Children savings total more than $650m

cent roy morgan roy morgan research national australia bank ANZ director

31 October 2014
| By Malavika |
image
image
expand image

Banks should seize on the chance to provide services for children aged between six and 13, who currently have $653 million in personal savings, Roy Morgan research showed.

The research showed around 20 per cent of bank customers has children in this age bracket.

"There is obviously a major role to be played by parents to encourage their children to save but banks also need to play a role by providing suitable products and incentive," Roy Morgan industry communications director Norman Morris said..

"Success in the longer term will depend on a number of factors and experiences over many years but children's banking should at least provide a good foundation for an ongoing relationship."

Heritage bank had the largest proportion (25.8 per cent) of customers with children in that age bracket while the Bank of Queensland had the lowest at 18.7 per cent.

Out of the big four banks ANZ had the highest at 22.5 per cent, while the National Australia Bank came last with 20.2 per cent. The Commonwealth Bank of Australia had 20.3 per cent.

The Young Australians Survey of 2,800 children showed children save $285 on average, but there is disparity between the balance distribution, with 21.2 per cent having less than $50, while 10.2 per cent have $1000 or more.

Over a quarter of the children surveyed (26 per cent) either have no savings or cannot say if they do.

Morris added that while children's banking mainly pushes or education rather than savings levels, but with around one fifth having saved less than $50, more children need to be urged to save.

"The current trend is not meeting this objective," Morris said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

5 hours 31 minutes ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

2 weeks 5 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

3 weeks 4 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks ago

The Reserve Bank of Australia's latest interest rate announcement has left punters disheartened on Melbourne Cup Day....

1 week 6 days ago

The Federal Court has given a verdict on ASIC’s case against Dixon Advisory director Paul Ryan which had alleged he breached his director duties....

1 week 5 days ago