The recession ‘has made children more financially aware’

Children have been made more aware of the importance of finances as a result of the recession, it has been claimed.

This new focus on money matters could help them avoid debt in later life.

Jasmine Birtles, founder of Moneymagpie.com, remarked that the recent economic downturn has made youngsters realise that money “doesn’t grow on trees” and that they will have to earn their cash in the future.

Of the effect of the credit crunch on kids, the industry expert said: “It’s made a lot of them more realistic about money and not just expecting to get ‘designer this and the latest that’.”

She added that some specialist children’s bank accounts can be a useful tool as they do not charge tax.

According to research compiled by Santander, 773,000 ten to 15-year-olds in Britain are working part-time or performing chores and are earning around £46 per month by doing so.

By Joe Shervin