The thought of putting money aside for the future may sound preposterous to many teenagers, as spending money on music, socialising and keeping up with the latest fashions take priority.
As well as the usual teenage expenditures, many youngsters will be looking to attend college or university, which as we all know can involve running up large debts.
Whilst encouraging adolescents to save may be tough, after all "adults just don't understand!", advising teenagers as to the benefits and rewards of putting some money aside can pay off. Covering costs, such as those associated with higher education, with savings funds can provide a rewarding alternative to simply relying on credit cards and loans.
Recent research by Scottish Widows suggested a growing number of young people are adopting a frugal attitude to money, by investing their pocket money towards their future plans.
Around 14% of young savers said they are putting money aside for when they get older, whilst a surprising 70% are already considering how they would like to spend their money in retirement!
Whilst looking so far ahead may seem a bit extreme to some, starting a savings habit early on can provide teenagers with a valuable financial buffer and a sense of independence.
A number of accounts are currently offered with the interests of teenagers at heart. As with accounts aimed at younger children, it is important to base a decision on the actual rate of interest and the account type, rather than any glossy offers and incentives.
For example, those who are committed to saving some money but need to access funds on a regular basis will suit a no-notice account rather than a fixed-rate bond.
A number of adult savings accounts are available to people of all ages. Yorkshire Building Society pays a rate of 1.65% on its Triple Access Saver Issue 3, available to savers aged eleven and over.
A minimum deposit of £100 is required and, although advance notice is not required, three withdrawals can be made per anniversary year.
Savers aged 16 and over in full-time higher education can receive a rate of 1.75% with Furness Building Society's Student Account. Deposits of £500 and over are required, although a half-yearly rate of 1.60% is paid for deposits between £1 and £499. Funds can be accessed without advance notice.
Those in their late teens who are planning ahead over the next few years may be tempted by the Fixed Rate E-Bond Issue 43. This five-year bond pays 3.00% to savers aged 16 and over.
A minimum investment of £1 is required and further additions can be made during the term.
Compare the best savings rates Search all easy access savings accounts Compare instant access savings accounts (with bonus) Choosing the right Student Bank Account
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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