This can also be done through a 'match funding' approach, according to Robin Baker, adviser for Eden School Fees Planning. He explains: "Many parents use this approach to incentivise children by matching any savings they put away.
"This promotes saving and gives the child greater perceived benefits of their efforts. I have seen parents use this for children saving for expensive school trips, enabling their children to take responsibility for saving."
Educating the client
While it is important to engage with children from an early age to teach them the value of saving, Jason Hollands, managing director of communications for Tilney Bestinvest, points out that sometimes it's the adults who need to be educated in this respect.
He says: "Minors themselves cannot legally own investments and in the case of child trust funds and Junior Isas, all contact will be through a nominated parent or guardian, so it is quite difficult to engage directly with clients' children so any educational initiatives need to be organised through the parents or grandparents.
"I would love to see personal finance taught within schools and over the years some financial services businesses, such as Foreign & Colonial IT, have got involved with sponsoring competitions with schools."
Mr Lakey goes one step further, commenting: "Those parents with a financial adviser could consider sending their older child to their adviser for a quick course on the basics."
Financial education has been part of the national curriculum since September 2014 but there will be a large swathe of people of university age who have never been taught about money matters.
While there is a natural limit to what advisers can do directly to educate children under 18, you can direct your clients to certain tools and websites that could help their offspring.
Certain organisations have created programmes for teenagers and young adults to help them understand their finances better. For example, Lloyds Bank has created a Money For Life programme, while Brown Advisory runs a Money Matters Course for university age students.
Essentially, educating your clients to teach their children about the importance of saving will help to create a more financially literate generation - which will benefit society as a whole.
