More than a third of children are growing up without savings, according to the latest research.
The research suggests that more than one in three parents have no savings account set up for their child.
The Co-operative Bank found that the average amount which parents save for their child is £10 or less per month. Less than one in seven parents are saving more than £50 per month for their child.
“It’s a tricky time for parents as they try to do their best for their child’s future, while providing for them at a time when living costs are continually rising,” said James Hillon, Head Of Savings at The Co-operative Bank.
Of those parents who did set up an account for their kids, 52% of them said they plan to keep their savings pot a secret from their child.
Almost half of parents said they want their child to be at least 19 years old before they have full access to their savings accounts. The research found that parents believe there is a lack of financial awareness amongst children and teenagers and 80% of them have called for better education on financial issues in schools.
As of 2012, university tuition fees will increase to £9,000 a year within some institutions, leaving little time for parents to prepare for their childís higher education. The research found that 65% of mums and dads said they wish they could save more money for their childís future than they can currently afford.
With youth unemployment at the highest level since records began in 1992 and many parents having to support their children well into adulthood with rising housing deposits, itís a struggle for many parents.
A junior ISA could help secure your childís future. The new tax free childrenís savings account will replace the governmentís Child Trust Fund (CTF) scheme which gives tax free credits to children under the age of 18. Parents or guardians will be able to save up to £3,600 a year in an ISA account, whether it is cash or stocks & shares.
This will be available from the November 1st.
Compare ISAs with Money Exert