Saving behaviour from childhood to early adulthood: analysis of British panel data

Summary

We explore the saving behaviour of children aged 11-15 using the British Household Panel Survey. Our findings suggest that parental allowances/pocket money (earnings from part-time work) lower (increase) the probability that a child saves. Parental saving behaviour does not influence that of their offspring, whereas parental financial optimism lowers the probability that a child saves. We then track the children into early adulthood (aged 16-26). Our findings suggest that having saved as a child has a large positive influence on the probability of saving on a monthly basis and on the amount saved as a young adult.