Teach pupils of four about savings, says the Church: Leaders want new clubs to teach children about how to handle money Church of England said children from four should attend 'savings clubs' Would help youngsters save small, regular amounts and learn about saving Proposal aims to prevent children relying on payday lenders later in life Plans drawn up by Archbishop of Canterbury's group on responsible credit Primary schoolchildren as young as four should attend "savings clubs" to teach them how to handle money responsibly, the Church of England said. The proposal aims to prevent them relying on controversial payday lenders or racking up heavy debts later in life. Under the plans, children would be able to save small, regular amounts of money, and would be given the chance to help to run the groups, working as junior cashiers or "bank managers." The Church of England proposal aims to prevent children relying on controversial payday lenders or racking up heavy debts later in life. It would see children as young as four attend 'savings clubs' (file picture, posed) Parents and school staff could also sign up to the clubs, with mothers and fathers able to set up dedicated accounts to save for particular expenses such as trips and school uniform. The proposals - which would be piloted in Church of England primary schools - have been drawn up by the Archbishop of Canterbury's new task Group on responsible credit and savings. They are now looking for funding from the government and private companies for the pilot scheme, which would run in six schools over nine months before being rolled out further. Last year, Most Rev Justin Welby criticised payday lender Wonga without realising the Church had indirectly invested £75,000 through its investment arm. Mr Welby later acknowledged it was "very embarrassing" to learn of the investment and the Church announced earlier this year it had severed its ties with the payday lender. Now, the Archbishop hopes the proposals can help people to avoid payday lenders - which charge astronomical interest on short-term loans - by teaching them to be careful with their finances from an early age. The Church said it was focusing on savings clubs in primary schools partly because it is responsible for one in four primaries in England and also because financial education is already part of the national curriculum for secondaries. The Archbishop, Most Rev Justin Welby, hopes it will help people avoid payday lenders by teaching them to be careful with finances from an early age The savings clubs would be given "seed" funding of £1 per child per term for the first year for all youngsters who want to join and take part, the Church said. Sir Hector Sants, the former chief executive of the Financial Services Authority and chair of the task group, said: "Savings clubs can transform lives through helping establish a responsible approach to money from an early age." The Church wants the savings clubs to be hosted by credit unions, small financial co-operatives set up by local communities and other groups such as trade unions. Because there are no shareholders and they are not driven by profit, credit unions can offer very low interest rates - on average 12 per cent a year - for those seeking loans to tide them over in financial difficulties. A report yesterday said savings clubs in schools can be a good way to improve children's financial knowledge. The Children's Society said research found nearly two-thirds of children get their first bank or building society account before they start secondary school, while nearly three-quarters of 15-year-olds with a bank account have a debit card. The charity said: "With children making financial choices at an even younger age, and regularly exposed to advertisements for credit, it has never been so important to ensure that children learn about debt and money management from an early age." The Church said four years old was not too young to attend savings club because "many young children have piggy banks." They added: "It is entirely optional both for children and schools. At that very young age, they can't help run the banks, but can bring in pennies to deposit.