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Young Australians saved over $650 million

Source: Roy Morgan Young Australians Survey, July 2013 – June 2014 (n=2,800), *Includes no savings; Roy Morgan Single Source (Australia), July 2013 to June 2014 (n=48,947)

Australians aged between 6 and 13 currently have $653 million in personal savings. Those with savings represent 1.8 million young people and account for 74% of this age group. These are the latest findings from the Roy Morgan Young Australians Survey of 2,800 interviews with children aged between 6 and 13 in the 12 months to June 2014.

Amount Saved by Young Australians

The average amount saved by young Australians is $ 285 but the distribution of balances is highly skewed with almost half having less than $50 and 10.2% have $1,000 or more.

Amount Saved by Young Australians (aged 6 to 13)

Amount Saved by Young Australians (aged 6 to 13)Source: Roy Morgan Young Australians Survey, July 2013 – June 2014 (n=2,800), *Includes no savings

It is worth noting that over a quarter (26%) either have no savings or can’t say if they do, leaving only 74% with a known amount in savings.

Bank Customers with Children 6 to 13

With a number of banks having an increased 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% of banks customers live in households with children in this age range, there is some variation in this proportion between banks.

Proportion of Bank Customers with Children 6 to 13 in Household

bank customers with children in householdSource: Roy Morgan Single Source (Australia), July 2013 to June 2014 (n=48,947)

Heritage bank has the highest proportion (25.8%) of customers living in households with children aged between 6 and 13. Of the big four banks, the ANZ has the highest with 22.5% and the NAB is the lowest with 20.2%.

Norman Morris, Industry Communications Director, Roy Morgan Research, says:

"Although just on three quarters of young Australians have their own savings, there is plenty of scope to improve this as this level has in fact gone down by a few percent over the last decade.

"In addition to the need to increase the proportion who save, there is a considerable opportunity to increase the amount that is saved as around one fifth have savings of only less than fifty dollars.

"It is recognized that a major focus of children’s banking is educational rather than high savings levels but in order to achieve this, a larger proportion of children need to be encouraged to save, the current trend is not meeting this objective.

"There is obviously a major role to be played by parents to encourage their children to save but banks also need to play a role by providing suitable products and incentives.

"In the long term it is obviously hoped that a worthwhile savings pattern developed with a particular bank in childhood will ultimately lead to a longer term adult relationship with the bank. Success in the longer term will depend on a number of factors and experiences over many years but children’s banking should at least provide a good foundation for an ongoing relationship."

About the Young Australians Survey

Roy Morgan’s Young Australians Survey is the largest continuous survey of this important market, with children recruited from households of existing Roy Morgan Single Source respondents.  Read more about this survey.


For comments or more information please contact:
Norman Morris, Industry Communications Director
Office: +61 (03) 9224 5172
Norman.Morris@roymorgan.com


About Roy Morgan

Roy Morgan is the largest independent Australian research company, with offices throughout Australia, as well as in Indonesia, the United States and the United Kingdom. A full service research organisation specialising in omnibus and syndicated data, Roy Morgan has over 70 years’ experience in collecting objective, independent information on consumers.

Margin of Error

The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.

Sample Size

Percentage Estimate

40%-60%

25% or 75%

10% or 90%

5% or 95%

1,000

±3.0

±2.7

±1.9

±1.3

5,000

±1.4

±1.2

±0.8

±0.6

7,500

±1.1

±1.0

±0.7

±0.5

10,000

±1.0

±0.9

±0.6

±0.4

20,000

±0.7

±0.6

±0.4

±0.3

50,000

±0.4

±0.4

±0.3

±0.2