- Six in ten (58%) parents in the UK do not have a savings plan in place for their children
- Of those that do, over half (59%) stopped putting money into their children’s accounts this year
- 12% have had to resort to using their children’s savings as the cost-of-living starts to hit home
As parents struggle to make ends meet, kids’ nest eggs are taking a hit, with 12% of parents resorting to dipping into their children’s ‘piggybanks’ this year. With a tough year on the horizon 58% of families today have no savings account in place for their offspring’s futures.
Independent research from Metro Bank has revealed that six in ten parents (59%) have had to stop putting money into their child’s account since August 2020, and 12% have already dipped into their children’s savings to pay bills.
The study of 2,000 adults from across the UK also highlighted that the four in ten (42%) who do have a savings account for their children are putting away £1,411 per year (a significant £117.50 a month).
One in four parents (25%) confirmed that their own savings are primarily in place for their children’s futures, with on average between £26 - £50 put away each month for that purpose alone. However, nearly a fifth (19%) say they will no longer be able to use their savings for this purpose.
Jo Bullard, Director of Bank Accounts Payments & Deposits, Metro Bank, comments: “This year has been tricky to navigate, with rising costs affecting everyone. It is worrying that many families can’t afford extras let alone saving to build the traditional ‘nest egg’ for their children’s futures. Those savings may have traditionally helped with key moments growing up, including education and learning to drive.
“It is important for children to learn about and understand finances. At Metro Bank, we believe that the earlier we can provide financial education, the earlier our younger generation will have the skills to navigate the world of money and help them understand how finances, saving and banking work. In addition to this, Metro Bank is here to help people who are struggling and offer a safe space to those who are anxious to talk about their money worries.”
The survey, conducted by OnePoll for Metro Bank, found that just one in five (17%) of us head to our bank for support. Out of those who asked their bank for guidance, over nine in ten (94%) said they found speaking to the bank helpful.
A study carried out by The University of Cambridge, found that, by the age of seven, most children are capable of grasping the value of money and understanding that financial decisions have implications and could cause problems down the line. The research also suggests children who are allowed to make age-appropriate financial decisions and experience spending or saving dilemmas can form positive “habits of the mind” when it comes to money.
Metro Bank has a variety of different products for kids and accounts for young people. The Bank also runs Money Zone, a free financial education programme highlighting the importance of budgeting and saving, which it has delivered to over 250,000 school children. To find your closest Metro Bank store, visit: https://www.metrobankonline.co.uk/store-locator/.