Australians aged between 6 and 13 currently have $653 million in personal savings. They represent 1.8 million young people and account for 74% of this age group. These are the latest findings from the Roy Morgan Young Australians Survey of 2,800 interviews with children aged between 6 and 13 in the 12 months to June 2014.
Amount Saved by Young Australians
The average amount saved by young Australians is $ 285 but the distribution of balances is highly skewed with 21.2% having less than $50 and 10.2% have $1,000 or more.
Amount Saved by Young Australians (aged 6 to 13)
Source: Roy Morgan Young Australians Survey, July 2013 – June 2014 (n=2,800), *Includes no savings
It is worth noting that over a quarter (26%) either have no savings or can’t say if they do, leaving only 74% with a known amount in savings.
Bank Customers with Children 6 to 13
With a number of banks having an increased focus on children’s banking, their growth potential will be influenced by the proportion of their customers that have children aged 6 to 13 in their households.
Although around 20% of banks customers live in households with children in this age range, there is some variation in this proportion between banks.
Proportion of Bank Customers with Children 6 to 13 in Household
Source: Roy Morgan Single Source (Australia), July 2013 to June 2014 (n=48,947)
Heritage bank has the highest proportion (25.8%) of customers living in households with children aged between 6 and 13. Of the big four banks, the ANZ has the highest with 22.5% and the NAB is the lowest with 20.2%.
Norman Morris, Industry Communications Director, Roy Morgan Research, says:
"Although just on three quarters of young Australians have their own savings, there is plenty of scope to improve this as this level has in fact gone down by a few percent over the last decade.
"In addition to the need to increase the proportion who save, there is a considerable opportunity to increase the amount that is saved as around one fifth have savings of only less than fifty dollars.
"It is recognized that a major focus of children’s banking is educational rather than high savings levels but in order to achieve this, a larger proportion of children need to be encouraged to save, the current trend is not meeting this objective.
"There is obviously a major role to be played by parents to encourage their children to save but banks also need to play a role by providing suitable products and incentives.
"In the long term it is obviously hoped that a worthwhile savings pattern developed with a particular bank in childhood will ultimately lead to a longer term adult relationship with the bank. Success in the longer term will depend on a number of factors and experiences over many years but children’s banking should at least provide a good foundation for an ongoing relationship."
Roy Morgan Research
Roy Morgan Research is Australia's best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
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