Banks look to young savers

There are 1.8 million young Australians, aged between 6 and 13, speaking for an estimated $653 million in personal savings, according to a Roy Morgan survey.  The results were based on around 2,800 interviews with children in the 12 months to June 2014.

The average amount saved by young Australians is A$285 but the distribution of balances is highly skewed, with 21.2 per cent having less than $50 and 10.2 per cent have $1,000 or more, Roy Morgan's research has shown.

According to Roy Morgan, a number of banks have increased their 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 per cent of banks customers live in households with children in this age range, there is some variation between banks.

Heritage Bank has the highest proportion (25.8 per cent) of customers living in households with children aged between 6 and 13. Of the Big Four, ANZ has the highest with 22.5 per cent and the NAB the lowest with 20.2 per cent.

Norman Morris, industry communications director at Roy Morgan Research, says that, in addition to the need to increase the proportion who save, there is a considerable opportunity to increase the amount saved because around one fifth have savings of less than $50.