Only a third of the 11 million kids who will turn 18 without a child trust fund (CTF) will have a savings account, according to the Building Societies Association (BSA).
Kids with government sponsored CTFs will not turn 18 until 2021. Until then, as many as 11 million kids will become adults, of which 3.7 million will not have access to any kind of savings for the future.
The issue will become more pertinent to young people as charges for higher education are gradually phased in ñ with the possibility that the £3,000 a year cap may be raised in the future.
Adrian Coles, director general of the BSA, said: “Whilst great strides have been made in encouraging young people to save, there are still obstacles which stand in the way of creating a whole generation of savers.
“With nearly 40 per cent of the children’s savings market, building societies are ideally placed to help deliver the government’s aim of ensuring assets for all children.”
Building societies currently account for 38 per cent of children’s savings, the BSA claimed.
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