A report from Scottish Widows has found a staggering 98% of 10 year-olds has already started saving while only 15% of adults said they had started saving before the age of 15.

According to the report, children take a pragmatic view of their finances with 29% saying they like to have some money saved; 27% said they save in case they need it in a few months’ time; and 14% are saving for when they are older.

An impressive 70% of children understood what a pension is and are already thinking about how they would like to spend their retirement.

Professor Jane Humphries from Oxford University said: “In an age when we often think of children as cosseted by parents and unwilling to shoulder responsibility, the research by Scottish Widows shows a completely different picture.

“It demonstrates that children are thinking about their financial futures and ready to save up to support their plans for life. While toys and games remain a priority, children also have their sights set firmly on the future and many save for school or university and even towards buying a house.

“These children started school around the start of Britain’s financial crisis. So perhaps growing up in an age of austerity has made them realise that saving for a rainy day is sensible.

“The rising costs of education may have prompted their concern with saving for university or college.”

The report highlighted that one in 10 children are already thinking about the costs of going to college, university or buying their first house and begun saving for these key milestones.

But a lot of this change is due to parents and their current financial habits.

Over the past two years, children have become more aware of their parents’ saving habits; 43% of 10 year olds are aware of special deals and offers when shopping.

While 48% of adults said that nobody influenced their saving habits, 77% of children said their parents encourage them to save.