Parents: Here’s how you could start to save for your child’s future
New research shows that nearly half (45%) of parents of children under are not saving for their child’s future, but you can start now
As parents, we all want to do all that we can to set our children on the best path in life and although saving for their future is not always top of the agenda, with the many costs that come with parenthood, it may be time to step back and take a look if there are some baby steps you can start to take to make it a reality.
Interesting research by Shepherds Friendly with YouGov revealed that 45% of UK parents with children under the age of 18 are not currently saving for their children’s futures, if this is you, then read on to see if you can start to make a small contribution to your little one’s future now.
Junior ISAs are a popular way for parents to put a bit away for little ones’ futures and the Junior ISA allowance renewed on April 6th and has risen from £4,368 to £9,000 allowing parents/guardians to save more for their little one’s future tax efficiently.
What are parents' saving goals for their children?
Other Shepherds Friendly research revealed that one in three parents (36%) said a housing deposit was the most important thing they wanted to save for their children for. With one in five parents (20%) choosing their children’s education and saving for university fees as their key motivator to save now. Surprisingly, only one in 10 parents said their child’s first car was the primary motivation to save now - suggesting more youngsters are expected to save to buy their own first car when the time comes.
With many parents finding it tough to have money to save at the end of the month, the survey did reveal however, that nearly half (43%) of parents said they would consider opening a savings plan for a child with two thirds (65%) of the above saying they would look to pay £10-£50 a month while a third (35%) said they would look to pay more than £50 a month.
A Shepherds Friendly spokesperson said: “Saving for your children’s future helps to give you peace of mind that you’ve got things in place for whatever the future holds for little ones. Whether that is to help them accomplish their dreams or to prepare them financially for the unexpected, creating a nest egg for your child’s future, by simply putting away as little as £10 a month could make a huge difference to your children’s futures.”
Bounty has partnered exclusively with Shepherds Friendly, who offer children’s savings products to parents, to encourage parents to take a closer look at their finances and see if there is a little wriggle room to start putting a token amount away for their little one’s future.
Shepherds Friendly is one of the oldest mutual societies in the world. Founded in 1826, they have been managing family finances for over 190 years. As a mutual, Shepherds Friendly put their members’ interests at the heart of everything they do and invest in a responsible manner to try to achieve the best returns possible on your child’s investment.
Shepherds Friendly believe that, as well as the obvious benefit of a tax-free lump sum when your baby grows to age 18, saving for your child helps to educate them about the importance of money and preparing for their future, helping to set up positive habits from a young age.
Please note: With all investment products, your capital is at risk.
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,097 adults, of which 478 were parents of children under 18. Fieldwork was undertaken between 8th - 9th August 2018. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).