Nearly half (44%) of parents with a child under 6 years old have increased their saving in the past two years but this habit reduces as the age of the child increases, new research has shown.
According to Scottish Friendly’s 2024 “Family Finance Tracker” report, 37% of people with at least one child between 7 to 12 years old are saving more now than they did two years ago. This figure drops further to 33% for those with a child aged 13 to 17 years and further still to 21% for people with at least one child aged 18 or over still living at home.
When looking at the numbers of people who are now saving less than they did two years ago, the report reveals a reverse order.
Half (50%) of people with at least one child aged 18 or over still living at home are saving less now. That figure drops to 47% for people with at least one child age 13 to 17 years and 44% among those people with at least one child between 7 to 12 years old. The figure bottoms out at 41% for people with a child aged under six.
Meanwhile 35% of people who have never been a parent or guardian to children report that they are saving more now than they did two years ago while 38% are saving less now.
Kevin Brown, savings specialist at Scottish Friendly, said: “Are these good intentions that have simply run out of road or a case of life getting in the way of wanting to do the right thing? Either way, it feels like a missed opportunity to rally the family to drive forward saving into a junior ISA, especially for those young families with a parent or guardian hasn’t had the time or means to set one up themselves.”
Brown said the rules around who can set up a junior ISA should be changed in order to help families save for children.
“Our research shows that more than 1 in 3 UK adults would likely set one up if the rule was changed. That rises to nearly 1 in 2 for Greater London. It is time that little line that puts up a huge barrier was rewritten. Doing so could help to secure even more children’s financial features across the UK.”
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