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

Money ‘too tight’ for parents to save for children’s future

0
Written by: Paloma Kubiak
17/10/2016
More than one in three parents worry about not saving enough for their children, according to a study.

One in eight said they worry most about whether their offspring will ever be able to afford a home of their own. Some 4% of parents are concerned their children will expect them to contribute a deposit for a home.

Despite these concerns, the survey of 2,000 parents of kids aged up to 18 by Nationwide Savings found that 21% are not saving for their children. And of this number, 74% said that money is too tight to do so.

Of those who are saving, 47% said they put money aside occasionally, with nearly a third saving each week or month. Dads save more than mums – 32% and 27% respectively.

The average amount saved a year is £561.11, which is made up of parents’ contribution, birthday and Christmas money from family and friends, child benefit and wages from chores.

More than a third of parents (36%) save the majority of funds for their child in a tax-efficient Junior ISA or Child Trust Fund, with a further 42% choosing a different bank or building society account. The traditional piggy bank is fed by just 3% of parents and 1% now save the majority of funds for their child in a Post Office savings account or through premium bonds.

Andrew Baddeley-Chappell, Nationwide’s head of savings policy, said: “It’s clear that today’s parents are feeling under pressure to help their children achieve their aspirations in adulthood – and are well aware that all too often those dreams can only be achieved at a price. Regular saving for your child’s future can mount up over the years, particularly if you ensure those savings are tax-free. Even when you can’t afford much, establishing a savings habit with your child and a responsible attitude to money can help to safeguard their financial future.”

See YourMoney.com’s A guide to choosing a children’s savings account.

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

Read previous post:
UK economy to enter ‘prolonged period of weaker growth’

The UK economy has shown “greater resilience” than anticipated since the EU referendum vote, but slower growth rates are expected...

Close