Aviva survey shows Gen Alpha are striking a balance between saving and spending

A survey of parents with children aged 16 and under found the typical estimated amount saved was £416, with many youngsters starting to save early and manage their money wisely

UK children aged 16 and under are saving over £400 on average from their pocket money, their parents say.

A poll of parents with children in this age bracket said the typical saved sum at £416. Nearly one in 10 (9%) say their offspring have saved between £501 and £2,000, the study by insurance giant Aviva found. The research, which quizzed more than 1,000 UK parents, was carried out by Censuswide in October.

Some 78% of parents encourage their kids to save a bit or all of their pocket money. Even parents of three-year-olds – over half (51%) of them – are already teaching their tots about saving money. Most parents (68%) say their children are good savers as well as spenders, spending their pocket money on food, toys, and video games. One in five children (22%) pick up money tips from social media like TikTok and Instagram or online money experts.

Over a third of parents (35%) worry about the quality and suitability of some online financial advice. Joanne Phillips, of Aviva Direct Wealth, said: "Our research suggests that Gen Alpha is emerging as Gen Save. Children are starting to save early, manage their money wisely, and build strong financial habits that will benefit them well into the future."

"Parents and family members play a crucial role in shaping these habits early, with many having important conversations about money management with their child as early as the age of three. With children already saving an average of over £400, they are gaining confidence in both the importance of saving and the benefits of interest-earning accounts – lessons that will serve them well during adulthood."