Kids with part-time jobs make better adult savers

While many a teenager might baulk at the idea of getting up early for a paper round, a part-time job could set many kids in good stead when they reach adulthood.

Children that work make better savers

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According to a report by economists, children who take a part-time job make for better savers when they grow up, suggesting that parents can 'shape' their kids' 'saving behaviour'.

A team of researchers from the University of Sheffield quizzed more than 3,200 children aged between 11 and 15 about pocket money, part-time jobs and their spending habits.

They noted "a distinct difference in the influences of these two different sources of children's income on their saving behaviour".

The researchers, whose report will be presented today at the Royal Economics Society's annual conference, added: "The magnitude of the effect of a one per cent increase in the child's allowance is associated with a decrease in the probability that the child saves by 21.8 percentage points.

"In contrast, the weekly pay that the child receives from part-time work is positively associated with the probability of saving."

The poll revealed that a typical 13-year-old received an average of £8.56 a week in pocket money, but those who worked bagged a weekly wage of £10.92. And the kids that worked part-time experienced positive long-term benefits.

The report concluded: "Whether the individual saved during childhood has a large effect on the probability of saving in adulthood."

Did you have a part-time job as a child? Do you think it helped you to successfully organise your finances as an adult? Leave your comments below...