SAVVY youngsters are saving more than their parents’ generation did, with 94 per cent of today’s 11 to 16-year-olds setting money aside for the future, according to new research from Santander 123 Mini.

The main priority for the forward-thinking youngsters is saving towards college or university, with over a quarter (26 per cent) citing that as a reason for setting cash aside.

Clothes and personal items (25 per cent), an expensive smart phone or tablet (22 per cent), a holiday or travelling (18 per cent) and a car (17 per cent) were also commonly cited reasons for saving. Eight per cent of 11 to 16-year-olds are even setting money aside for a deposit on a house.

Youngsters appear to be balancing their books carefully, spending about half and saving about half of their monthly income. The average amount saved by children is £28 per month, or £336 a year. That is just over half (51 per cent) of the average monthly income children receive, which is currently £55 per month.

Parents appear to be the main source of money for children, providing almost half (£26) of their monthly income. A part-time job brings in an average of £15 per month, while other family members and sources contribute the rest.

The Santander 123 Mini study, which questioned 11 to 16-year-olds about their savings habits and then interviewed parents about their financial behaviours as a child, found that 83 per cent of adults saved money when they were their child’s age.

While 47 per cent of children today make regular deposits into a bank account however, just 21 per cent of their parents say they did that when they were that age.

Reza Attar-Zadeh, director of retail products for Santander UK, said: “The extraordinary economic climate of recent years is shaping youngsters’ attitudes towards money. It’s clear that many are more financially astute than grown-ups may give them credit for and are adopting a positive approach to spending and saving their money."