Regular saving ‘helps build substantial sums’

Saving on a regular basis from an early age can help reduce the need for handouts and loans from parents at a later stage in life, it has been claimed.

Scottish Widows believes that parents should encourage their children to put away some money every month to save for the future.

Making use of tax-efficient savings vehicles like independent saving accounts (Isas) and child trust funds is one way of insulating against future debt, according to Anne Young, a savings expert at Scottish Widows.

“Children can’t do Isas but once they’re 16 they can start doing cash Isas. Adult children can do an Isa. If you’re going to save, don’t pay tax – it’s a no-brainer,” she stated.

“Use your Isa allowance. You don’t have to put the full amount in, again, you can do it by direct debit, do it monthly.”

She said that people can build up substantial sums by putting money away on a regular basis even if they are only small amounts.

New research by Scottish Widows has revealed that 42 per cent of adult offspring used parental handouts to pay off debt last year.

© Adfero Ltd

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