You are here: Home - Saving & Banking - News -

N&P conducts child’s savings account research

Written by:

Recent analysis by Norwich and Peterborough Building Society (N&P) found that in 2007, savers put on average £112 a month into a child’s savings account.

This figure equates to £1,346 a year or a nest egg of over £24,228 if money is saved regularly every year until the child reaches the age of 18. The highest average amounts were saved in August (£153.09) and December (£129.72) while the lowest were saved in February (£93.43) and September (£95.08).

The account data analysed reflects the savings habits of children, their parents and their grandparents – highlighting an all round view of the amount saved for each child throughout 2007.

The high amount saved by those who made regular monthly payments in August (£153.09) could be explained by additional income for children from chores, summer work and holiday money from relatives and grandparents. This bumper month is predictably followed by a low in September (£95.08) when children and their parents have less money to save due to a new school year and associated expenses.

February (£93.43) saw the second lowest regular savings amount – possibly reflecting restricted spare cash following a higher savings level in December (£129.72) and January (£103.97) as children credited their accounts with Christmas present money.  The rollover expense of a new term’s school fees and costs could also be reflected here.

Gary Lacey, group product manager at N&P, said: “With so much doom and gloom surrounding debt, it is encouraging to see such a strong savings ethic from, and for, the young. This data reveals that not only are regular savers potentially saving their entire children’s benefit payment each year (£941.20 for a first child) but also putting in over £400 more. This is great news for the future of UK savings.

“While these figures are encouraging, more still needs to be done to highlight the benefits of saving to those who either don’t save at all, or who do so rarely. Actively putting aside regular amounts instils a positive savings habit in children and adults alike, and can really add up in the long run.”



Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
FEATURE: Troubling times for commercial property funds

With increasing numbers of asset managers putting a freeze on withdrawals, what does the future hold for commercial property funds?...