Recent research conducted by Datamonitor has revealed Britain's teenagers to be the richest in Europe. The source of their impressive income is of course their poor old parents, in the form of pocket money!

Despite the gradual shrinkage of the teenage population their total income is growing annually by 3.9%. However the rate of increase in teenage income is set to slow as parents limit the increases in pocket money that they give their children.

In independent research, Mortgage and Savings provider Birmingham Midshires also found that many people felt they hadn't learnt about the value of money as a child. Just four in ten Britons (41 per cent) claimed their parents had taught them to save money before buying an expensive item.

If your kids have been showered with gifts at Christmas time, yet are still crying out for more than your budget can stand, now could be a good time to start encouraging them to save up for all those 'must-have' items they're pestering you for.

The best way to get your kids into the habit of regularly saving money is to help them open their own savings account and encourage them to use it. Savings accounts are great places to keep pocket money and have the added bonus that a piggybank can't offer - interest on the amount paid in!

Birmingham Midshires' 'young saver' children's account has been specially designed for children and teenagers. The minimum opening balance is just £1. ‘Young saver’ pays 4.00 per cent on all balances and continues to be available to savers until the age of 23, if they remain in higher education.

Dishing out pocket money is an inevitable chore for today's parent but it's a great way to get kids used to handling money. A further lesson in appreciating its value is to encourage them to pay some of it straight into a savings account. This will get them used to how saving money works, and ease your own spending burden as they save up for expensive things themselves.