Kids could rack up £30,000 by A Level year
If parents save £50 per month for their children, they could have a collective £10.7bn by the end of their schooldays, Moneysupermarket has calculated.
Research released today by the comparison site showed children starting school now could be more than £15,700 richer by the time they finish their A Levels, if their parents put away less than the monthly child benefit per month for them.
A £50 saving per month for 14 school years would result in an interest payment alone of more than £7,300. Increasing the monthly saving to £100 could boost the interest to more than £13,850, bringing the final balance more than £30,000. Either way, this could be enough to fund university studies or help with a deposit for a first home.
Kevin Mountford, head of savings at moneysupermarket.com, said: “The value in starting early is down to the almost magical effect of compound interest. This means parents can nearly double their child’s investments over 14 years if they are diligent in their monthly savings. And there is no reason to stop children adding to their savings pot themselves as they grow older.
“Everyone should be saving for their future, and we should all help kids get a head start. The sooner children learn the importance of regular saving the better.”