Haringey Council has unveiled a new scheme that will give all pupils a savings account when they start secondary school.
The account is intended to encourage children to start saving from an early age and create an alternative to payday loan companies in the future.
There will be approximately 2,200 pupils in Haringey starting secondary school in September 2014 and will all be given a £20 account with London Capital Credit Union.
Councillor Joe Goldberg, cabinet member for finance, said: “This scheme will mean a savings account for every one of Haringey’s eleven-year-olds. It underlines both our commitment to supporting local families and our ongoing efforts to tackle the scandal of the legal loan shark industry.
“It will give our young people the opportunity to learn and think about different financial options and will further strengthen the role that the credit union has to play in our communities.”
Martin Groombridge, manager of London Capital Credit Union, said: “It is so important to get children to learn the savings habit. This initiative is a welcome way of promoting saving as a way of avoiding debt problems in later life.”
The scheme will cost the council around £60,000 per year and the council hopes to continue the scheme year-on-year for all year seven pupils.
The scheme will be debated before cabinet on February 11, before to Full Council for approval on Wednesday, February 26.
Year seven students who live in Haringey but attend school outside the borough will also be eligible.