In addition, good interest rates and high quality products are encouraging people to save with building societies, he added.

Jason Robinson, director of savings operations at Birmingham Midshires, commented: "Far from being a burden on their children, grandparents are contributing significant amounts of time, money and assistance to their offspring at the same time as adjusting to huge changes in their own lifestyle and income."

The research found that children are saving 46 per cent of their money every week which Mr Shore said was "great to see".

In November 2006, building societies had net receipts of £848 million. The BSA reports this figure rose to £2,348 million by November 2007.Savings with building societies are currently at a "very high level", according to the Building Societies Association (BSA).

Research by Bradford & Bingley has found that a further 38 per cent intend to spend less money and 26 per cent want to reduce their debt during 2008.

The results were described as "encouraging" by the bank's director of savings operations Jason Robinson, who stated that people were obviously not allowing the impact of recent market conditions to affect their savings.

Credit Action reports that total UK personal debt reached £1,391 billion at the end of October, a 9.7 per cent increase over the previous year.

A study by HM Treasury and HM Revenue & Customs found that 39 per cent of UK consumers currently hold an Isa, making it the fourth most popular form of savings.

"It's really good for the child to actually see how things are growing and obviously with the onset of technology children can be more savvy with online savings and that type of thing," she said.

It said it was a "scandal" and that many commentators believe government intervention is necessary.There are "massive" variations between annuity and pension plan policies, claims Informed Choices.