Parents 'should encourage youngsters to use savings accounts'

Friday 30 September 2011

Article by Mozo

A financial adviser has suggested that Aussie parents should make more effort to encourage their children to use of savings accounts.

Children 'should be encouraged to use savings accounts'

Charles Badenach, of Shadforths, suggested that helping youngsters to put money aside each week could help them later in life when they have to handle their own finances, reports the Tasmania Mercury.

"If you simply hand your children money you're asking for trouble," the expert stated.

He added that kids will start to view their parents as a "walking ATM" if they simply hand out cash as and when their youngsters ask for it.

Mr Badenach suggested that schools should run classes to teach children about the benefits of using bank accounts and how they should manage their finances.

This comes after figures from the Reserve Bank of Australia revealed that Generation Y Aussies are starting to put more cash aside than they have done in the past.

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