Teenagers are becoming increasingly financially literate, a new study suggests.

According to research by the Learning Skills Council (LSC), 12 per cent of young people claimed they had opted for their particular bank account because of the interest rate offered compared to seven per cent who were swayed by a free gift.

The study also revealed that 39 per cent of teenagers use their account for savings with some five per cent opening one up for their education maintenance allowance (EMA).

However, the LSC study revealed a quarter of 16-year-olds are unaware that they need a bank account in order to receive EMA, with three per cent not having an account at all.

Director of learner support at the LSC Trevor Fellowes claimed that the allowance helps young people with debt management as it "can provide vital funds to those who need it the most".

Last week, moves to improve financial education for young people in Wales were greeted by the principality’s Consumer Council who claimed it could help with debt management in the future.

Senior policy officer Lindsey Kearton claimed that the scheme provides "the right knowledge and skills" to deal with personal loans, mortgages and savings in later life.

Interfinancial providing you with breaking debt management news.