2nd January 2015
The government is setting up savings clubs in schools to encourage the next generation of savers.
It is planning to fund a savings club pilot programme, called ‘LifeSavers’, to help children develop good financial habits from an early age. The clubs will be set up in schools with help from credit unions.
The project is being led by the Archbishop of Canterbury’s task group on responsible credit and savings. LifeSavers will involve the whole community and will engage help from teachers, parents and community volunteers.
Research has shown children develop attitudes towards money long before they reach secondary school age and the Money Advice Service said that most children have formulated their financial habits by the age of seven.
The Archbishop of Canterbury Justin Welby said: ‘The project has the potential to help establish sensible, positive attitudes to money and the habit of saving in children and young people – habits we hope will stay with them for life.’
The project will pilot in six schools in its first year in south-east London, Bradford and Nottingham and will be rolled out to 100 schools over the next four years. The cost of the pilot is £150,000.
Economic secretary to the Treasury Andrew Leadsom said: ‘The project will help to tackle the root cause of money problems and develop good savings habits as early as possible.
‘Credit unions provide an invaluable service to a growing number of members, many of whom are on lower incomes, and make a real difference to their communities. The government wants to see British credit unions go from strength to strength, and I’m hoping the money we’re announcing today is the kind of Christmas present the sector needs to ensure the next generation understand the benefits of saving with credit unions.’