One possible solution to Britain's mounting debt problem is to simply 'nip it in the bud' by teaching children the value of saving.

This is the message of Scarborough Building Society who recently launched a new campaign to promote their Scarborough Smart Kids range. As part of raising awareness, the building society is trying to boost the 'street cred' of saving by the use of new slogans for their branches sporting anti-authoritarian motifs such as ‘Kids Only’ and ‘No Adults Allowed!’.

Children will also have their account passbooks stamped with colourful stickers drawing attention to the importance of saving, a message intended for their parents and guardians too.

Tony Burdin, Head of Group Marketing for the Scarborough Building Society, says it is time to start educating children and parents about the value of saving.
"Because there are so many worrying statistics out there though, we felt it was also important to get these messages across in a fun way – hence the reason for a sticker campaign which we hope will both appeal to parents and communicate directly with children in a language which will be meaningful for them, " he said.

Virgin Money is another company stressing the importance of encouraging children to start saving as more and more young people struggle to buy property. Jason Wyer-Smith, a spokesperson for Virgin Money, said: "The thought of saving for a pension can fill a young person with dread so it's great to be able to get your kids off to a flying start when they're still in nappies!"

The government has recently switched onto this and every child born after 31st August 2002 will receive a voucher for £250 which can be used to open a child trust fund account, giving them a small nest egg to nurture over the years. But perhaps more important than stashing money away in kids saving accounts, is the active process of actually teaching them the discipline for themselves.

One successful scheme in America is proven to help children learn the habit of saving by teaching them how to allocate money and categorise their allowance. The Financial Peace Junior Kit, suitable for ages 3 to 12, was developed by David Ramsey who and includes three separate envelopes labelled 'savings', 'spending' and 'giving'. The child learns to stash away money in each section but if they fail to do the chores they receive no money and soon begin to learn the value of work!

Schemes like this are worthwhile but parents should be careful they do not over reward their child every time a job is completed. The real aim is to teach them financial skills. By paying your children a small amount every time they sweep the drive, you are encouraging them to develop entrepreneurial skills, prompting questions such as 'who else wants their drive swept?' or 'which of my neighbours' gardens can I weed?' and 'how can I earn more than this using my brain!"

By installing these disciplines in children the next generation will hopefully exercise more thrift than the current and learn the value of pension schemes, savings accounts and future property investments.

Find the latest savings account offers from UK Net Guide.