A large number of children between the ages of 11 and 16 have seen their parents reduce their level of spending during the economic downturn, a new survey has revealed.

Conducted by the Royal Statistical Society Centre for Statistical Education (RSSCSE) at the University of Plymouth, 33.1 per cent have witnessed lower credit card and cash spending.

One in five acknowledged that less money was spent on Christmas presents last year in the poll carried out by the BBC, while 32 per cent said they knew someone who had lost their job.

Interestingly, 35 per cent of respondents said they hoped to own a property later in life, which could provide a boost for the mortgage market.

Clydesdale and Yorkshire Banks recently discovered that 28 per cent of individuals in the UK are now putting more money in their savings accounts than they did 12 months ago.