London's parents prefer to save for kids

Parents in London prefer to save for their kids rather supply them with pocket money, a new survey has revealed.

Although in London less children get pocket money than anywhere else in the country, they are most likely to have parents who are looking to their future by depositing money into a savings account, according to an Engage Mutual study.

The capital’s parents are bottom of a pocket money table, with just 33 per cent giving their offspring a regular allowance, compared to 55 per cent in the east Midlands, which tops the league.

However, it was found that 40 per cent of London parents are regularly saving for their kids’ future.

Engage Mutual’s Karl Elliott explained: "In a credit card society that is driven by a have-it-now culture, it is pleasing that so many parents are saving for their kid’s future and those children in areas where parents are the tightest on pocket money will thank them in years to come when they enjoy the benefits of a healthy, matured savings fund."

The Financial Services Authority will rethink its compensation procedures after the crisis that has hit mortgage provider Northern Rock, reports the BBC.