Why kids are smarter at banking than parents

Online and mobile banking is helping young people to save. Here's what you can learn from the younger generation...

Good news for any parent... people aged 18-24 are more engaged with their bank accounts than any other generation – because they're using online and mobile banking, according to the Halifax Generation Save Report. Despite having lower incomes and less disposable cash, they're saving money and keeping better track of their savings accounts. Four out of five young people say that online and mobile banking helps them to save money.


Dubbed 'Generation Save', these tech-savvy youngers could teach older generations a thing or two about the best banking practices. Only a third of people over 65 are using online banking to open new accounts with their existing banking compared to 74% of people aged 18-24. They're able to recognise the benefits of banking online such as ease of checking ingoing and outgoing cash, as well as transferring extra cash into savings accounts. Meanwhile over 55s are least likely to find online and mobile banking helps encourage them to transfer money across to savings accounts.

Embracing technology means that people under 25 are opening bank accounts online much more than anyone else. This means they're not constrained by branch or phone line opening hours like 60% of over 65s who prefer to go into branch to set up new accounts. Yet young people are more likely to keep all their accounts with one bank for ease of transferring - this isn't always the best way to save as you could get a better deal by shopping around.

Why online banking can work for you
1. Transfers

As mentioned above it's very easy to transfer funds across accounts with online and mobile banking. Whether that's topping up your savings account or adding more to your current account, you'll be able to do it instantly.


2. Tracking
Keeping track of your finances is essential. If your phone is always in your handbag make sure you've got your bank's app (visit its official website to make sure you download the right one) and you'll always know how much money you've got. Some online banking websites offer budgeting tools and advice that can help you track your spending. Four out of five (86%) people who manage their money online say they 'worry less' according to Halifax.

3. Payments
Out for dinner with your friends? Instantly transfer your share over with the mobile banking app. It also makes it really easy to send money to your kids at uni or any other accounts you have with a different bank.

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