Children with savings accounts are financially better off adults

Children who have savings accounts from an early age are more likely to have financial success than their peers.

Assistant Professor Terri Friedline from the University of Kansas analysed six years of data from the Panel Study of Income Dynamics. Friedline tracked young people aged around 17 and found those who began the study with bank accounts maintained them and diversified their investments by the time they were 23.

On average, people who had bank accounts as children saved $2000 while their peers only saved $100.

The study controlled for things such as college attendance, employment and family wealth and still found a positive relationship between youth savings and adult finances.

Read more at University of Kansas