Family Matters: Bank of Mum and Dad always open

editorial image
0
Have your say

IN THESE tough times it may not be too much of a surprise to find that 21 per cent of parents in Yorkshire and Humberside don’t put aside regular savings for their children’s future.

Parents are saving up to £3.79 billion a year for their children with the average family putting aside £54 a month, researchers working for an investment company found.

In Yorkshire and Humberside, 39% of parents are saving every month, while 21% don’t save at all. This is similar to their national figures, which show just 44% of families are able to save regularly and 21% don’t save at all. Parents in London and Eastern England are most likely to save regularly while those in Wales are least likely.

The most popular reason for parents saving is to contribute to their children’s education with 30% putting money aside for university or school costs, while saving for a first home is the next most popular reason chosen by 13%.

Freelance financial journalist Melanie Wright, who writes the Sunday Mirror’s Money column every week, and also contributes regularly to The Sunday Times, has put together a guide to saving for children which is available at http://www.castletrust.co.uk/savingforchildren.

Sean Oldfield, Chief Executive Officer of Castle Trust, said: “The Bank of Mum and Dad is always open for business with nearly £3.8 billion being deposited a year by parents of under-18s.

“The issue is that investing in bonds, equities, savings accounts or other products usually aims to beat inflation but parents saving for their children’s first home would benefit from beating house price inflation instead.

“A fixed-term tax efficient investment linked to housing can be used very effectively when you have a specific goal of saving for your children’s future home.”

The firm is offering long-term savings products aimed at parents saving for children. For more information, go to the website, www.castletrust.co.uk, but always take independent financial advice before deciding on any financial product.

One good place to start is the website, Money Saving Expert, run by consumer champion Martin Lewis. He has a section about many aspects of family savings. Go to http://www.moneysavingexpert.com/family/family-money-saving