Pecking order at the piggy bank

YOUNGER siblings might be seen as more fun, but their big brothers and sisters win when it comes to money.

Research commissioned by Beyond Bank Australia has found the oldest child is twice as likely to save more money than the youngest.

The Farley family illustrates the findings nicely. Amelia, 7, visits the bank once a month to deposit savings whereas brother Lachie, 5, loses money.

“Amelia first clicked with the concept of saving her money when she realised that she’d need money if she wanted to buy anything from the school canteen,” mother Jodi Farley said.

“Lachie has been the complete opposite and relies on the generosity of his sister when lining up at the school canteen.

“Amelia also regularly counts her money to make sure it is all there, while no sooner have we given Lachie his pocket money than he seems to have lost it.”

Amelia said she did not want to spend all her money immediately. “Normally, what I do is save my money and then spend it when I have heaps of it,” she said.

Beyond Bank’s research found 86 per cent of children did household chores to earn pocket money. Almost half of parents believe $5 to $10 a

week is the right amount to pay, and 83 per cent pay it in cash.

Beyond Bank’s general manager customer experience, Nick May, said it was easier for children to understand money if they could see it.

“Older children tend to be more responsible, conservative and smarter about money and as you move down the pecking order, the approach to savings seems to shift,” he said.

Mr May said parents could help younger children by including them in the banking process.

“Take them into a branch, let them see how it works and consider opening a junior savings account to promote the idea of putting your money somewhere safe where you can watch it grow,” he said.