Children aged 16 and under have squirrelled away more than £400 on average from their pocket money, their parents estimate.

A survey of parents with children in this age group found the typical estimated amount saved was £416.

Nearly one in 10 (9%) believe their child has saved between £501 and £2,000, according to the research among more than 1,000 parents across the UK commissioned by Aviva.

About four-fifths (78%) of parents said they encourage their child to save some or all their pocket money, according to the UK-wide survey carried out by Censuswide in October.

Children are starting to save early, manage their money wisely, and build strong financial habits that will benefit them well into the future

More than half of those (51%) with a three-year-old said they have already started instilling savings habits.

More than two-thirds (68%) of parents reported that their children are balancing saving with spending, using their pocket money to buy items such as food, toys, and video games.

According to their parents, one in five children (22%) glean information about money from social platforms such as TikTok and Instagram or online financial influencers.

However, more than a third of parents (35%) expressed concerns about the quality and appropriateness of some financial information available online.

Joanne Phillips, managing director of Aviva Direct Wealth, said: “Our research suggests that Gen Alpha is emerging as Gen Save.

“Children are starting to save early, manage their money wisely, and build strong financial habits that will benefit them well into the future.

“Parents and family members play a crucial role in shaping these habits early, with many having important conversations about money management with their child as early as the age of three.

“With children already saving an average of over £400, they are gaining confidence in both the importance of saving and the benefits of interest-earning accounts – lessons that will serve them well during adulthood.”