Are you a spendthrift or an impulse buyer? Because, be warned, how you deal with money is influencing how your children will handle their future finances, probably without you realising!

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A report by the Government-backed Money Advice Service (MAS) suggests that the good and the bad ways parents handle their finances is picked up early by their young children.

The research, compiled in conjunction with behaviour experts at Cambridge University, found that by age 7, most children know how to count money and that it buys goods, according to the Telegraph. They're also aware what it means to earn money. Most, however, have not worked out the difference between "luxuries" and "necessities".

The report was commissioned to show how early habits can impact on the way we deal with money in later life.

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