Finance Choices
Are you saving for your children?
Parents are putting their own needs on the backburner to save £250 million a month for their children's future, new figures show.
According to savings bank ING Direct, 44 per cent of parents are now putting money in the bank for their offspring's education, with many cutting down on socialising to help their children.
This is a massive increase on the 12 per cent of parents that were saving for their children's education three years ago, ING revealed.
On average proud mothers and fathers are investing £36 a month, with one in ten putting a lump sum away rather than a monthly deposit.
"It is encouraging to see almost half [of the UK's parents] are making financial provisions for their children's future," said Lindsay Sinclair, spokesperson for ING Direct.
"We advise parents to start saving as soon as they can so that they are fully prepared for the increasing financial burdens that education often brings," he added.
ING also uncovered the lengths to which parents are going to in order to provide for their children's education.
Close to one in two (46 per cent) said that they have cut back on nights out with friends, and almost as many (43 per cent) said that they are holding back from going shopping and buying fewer clothes. More than one parent in three admitted to ditching holiday plans or not upgrading their car to increase their child's education fund.
Mr Sinclair added: "Clearly parents up and down the country are taking the funding of their children's education seriously, with many making sacrifices along the way.
"By putting away a manageable amount every month into a savings account, parents can be assured that they are taking control of the situation and building a strong foundation for their children's future."
ING found children in Scotland have the most generous parents, with 58 per cent of their mums and dads putting money away for their education, and close to a quarter of these saving well over the UK average at £76 and £100 a month.
According to savings bank ING Direct, 44 per cent of parents are now putting money in the bank for their offspring's education, with many cutting down on socialising to help their children.
This is a massive increase on the 12 per cent of parents that were saving for their children's education three years ago, ING revealed.
On average proud mothers and fathers are investing £36 a month, with one in ten putting a lump sum away rather than a monthly deposit.
"It is encouraging to see almost half [of the UK's parents] are making financial provisions for their children's future," said Lindsay Sinclair, spokesperson for ING Direct.
"We advise parents to start saving as soon as they can so that they are fully prepared for the increasing financial burdens that education often brings," he added.
ING also uncovered the lengths to which parents are going to in order to provide for their children's education.
Close to one in two (46 per cent) said that they have cut back on nights out with friends, and almost as many (43 per cent) said that they are holding back from going shopping and buying fewer clothes. More than one parent in three admitted to ditching holiday plans or not upgrading their car to increase their child's education fund.
Mr Sinclair added: "Clearly parents up and down the country are taking the funding of their children's education seriously, with many making sacrifices along the way.
"By putting away a manageable amount every month into a savings account, parents can be assured that they are taking control of the situation and building a strong foundation for their children's future."
ING found children in Scotland have the most generous parents, with 58 per cent of their mums and dads putting money away for their education, and close to a quarter of these saving well over the UK average at £76 and £100 a month.
posted by Bruce Wayne at 10:39 AM
Are you saving for your children?
5 Comments:
Hi guys
I'm a newbie so if i've posted in the wrong place I'm sorry!
I wanted to know whether you can close childrens accounts before they become eligible for withdrawal at age 7 or do you have to wait until the child is 7 so they can close it themself.
Also, can you invest on their behalf in fixed term bonds? They seem to get a better interest rate?
Hope this isn't too rambling!
THANKS!!!!
Under 7 the parent (or signator on account) can sign to withdraw funds, after 7 the bank has the right to ask the child to sign to withdraw provided the account is in their name not in parents name Re.
What kind of fixed term bonds are you thinking of?
Most that I have seen seem to only open accounts for over 16 year olds (Mini cash ISA) or 18 if there is any investing in shares.
Hi Dot,
Who is the account with?
I wouldn't want you to close it today, only to find it was eligible for a £200 windfall tomorrow.
You are right, IMHO, to be considering the attractions of fixed term bonds.
Hi guys
Thanks for the posts
The account is with Coventry Building Society. Any advice as to which type of bonds and which accept under 16's?
I would rate the Coventry a meagre 2/10 on the windfall stakes. So it's primarily an investment decision.
But I'm pretty sure that Cov have a decent kids' account rate already. In fact it's 4.45%.
Ah. I now see your problem. Coventry does not allow any withdrawals on these Interest Zone accounts until the child is aged 7 as the account is in the child's own name. And after 7 they can ask the child to sign.
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