Families on lower incomes ‘set aside more for children’s savings’

Families on lower incomes are doing more to set aside money for their children than those in higher income brackets, it has been claimed.

According to child savings provider Engage Mutual, lower income families are diverting a higher proportion of their money towards children’s savings.

This is despite the fact that they have a significant number of disadvantages compared to those earning higher wages, a spokesman pointed out.

For example, he pointed to government research showing that those in lower income brackets are 34 per cent more likely to rent rather than own their home.

Karl Elliott, marketing director at Engage, said that in his company’s experience “lower income families are leading by example”.

“Lower income families are eight per cent more likely to actively seek to invest their child’s Child Trust Fund than higher income families,” he added.

The child trust fund provides for every child born in the UK to receive a government voucher worth at least £250 towards a savings account that can be accessed when the beneficiary reaches the age of 18.

© Adfero Ltd

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