Majority of parents do not encourage children to save

Some 73 per cent of parents admit that they do not encourage their children to save money given as Christmas presents.

According to new research from Yorkshire Bank, half of parents say they will struggle financially in January, following expenditure over the festive period.

And one in eight says that they may borrow money from their children, who each receive an average of £191.50 in cash gifts.

However, parents who may be tempted to reclaim some of the cash spent over Christmas by lending from their offspring may instead benefit from ensuring a savings bond or trust fund in order to secure their children’s money.

“It’s good to see that at least some parents are encouraging their children to save money. Worryingly, though, they seem to be a minority,” said Gary Lumby, Yorkshire Bank’s head of retail.

“The sooner children start saving, the better,” he added.

In addition to spending on Christmas gifts, Direct Line recently discovered that UK shoppers plan to pay out a collective £5.5 billion on discounted goods in high-street sales.

© Adfero Ltd

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