Many children understand why it is important to put money aside into savings accounts, the managing director of the Debt Advice Foundation has indicated.

David Rodger explained that youngsters also tend to appreciate why savings accounts are favourable to current accounts in terms of the returns that they offer.

"The main challenge facing society is that many children, when presented with the opportunity to have something immediately by taking out credit will do so over saving" the expert noted.

Children therefore need to realise that although credit may seem appealing at the time, they are likely to end up paying more for it due to interest being added on, Mr Rodger emphasised.

Research from Which? Money recently found that banks and building societies currently offer an average interest rate of just 1.01 per cent on easy access accounts for children.

Half of easy access children’s savings accounts pay one per cent annual equivalent rate or less, the findings showed.