Fewer parents saving for their children
A recent survey commissioned by Baillie Gifford & Co shows that the number of parents saving for their children’s futures has decreased by more than 10% since 2002.
However, the number of children who believe their parents are saving on their behalf has actually increased. In 2007, 40% of children believe that their parents are saving on their behalf, whereas in reality the figure is 51%.
This compares to five years ago when 39% of children believed their parents were saving on their behalf, while the true figure was 60%. Of those parents who are not saving for their children in 2007, 53% cite “not being able it afford it”, as the main reason.
Another statistic shows that perhaps children’s expectations are getting a bit more realistic with the march of time; in 2002, 46% of children would have liked their parents to have been saving for large items such as cars and bikes, whereas in 2007, the number had fallen to 40%. In reality, the most popular reason for saving was for a university education.
Ian Bruce, Baillie Gifford’s Children’s Savings Plan campaign manager, said: “Comparing the two surveys was fascinating, and the first notion which sprang to mind was of a nation of parents who are tightening their belts, and pinning their hopes on educating their children rather than helping them take the first step on the property ladder. Perhaps parents feel that property in the current market is an unrealistic goal.”