Parents aim to save £7,000 for children

PARENTS in the East Midlands expect to save an average of £7,000 by the time their children turn 18 according to research by The Nationwide Building Society.

The poll reveals that eight in 10 parents in Britain put money into their children’s saving accounts, piggybanks or pockets each month, with the average amount for this region being £37.39.

Despite this news, the survey also revealed that one in three mums and dads fret over what their child will spend their nest eggs on.

It was revealed that 38% of those surveyed worry their children will fritter their money away - with many saving with the intention that the money is used for a defined purpose later.

Half of those involved said they save to create a nest egg for their children’s future, while more than 45% are saving to help their child through university, 35% to help with a deposit for their first house and 30% are putting money away for their child’s first car.

Findings produced by the building society reveal the significant variation between regions and the amount parents expect to have saved when their child reaches 18-yearsold.

Parents in the East Midlands are second highest in the table just under Londoners who on average aim to save £56.43 per month, while the South West and Wales fall bottom of the table with £27.03 and £23.49 amount of savings being put away.

Tom Riley, Nationwide’s Director of Savings, said: “Parents always want the best for their children, so many will put money away on a regular basis.

“Parents have told us they want to have control over their child’s savings while they’re building a nest egg and often they’ll have a view on what it should be used for, whether a car, university or towards a home of their own.

“Raising a family is an expensive business so it’s not always easy for families to put money aside.

“As a third of parents confessed, they sometimes need to dip into their children’s savings in an emergency, so it’s important to have the reassurance of access on their account.

“We have been helping children and parents save for over 160 years and many who started saving with us as children continue to stay with us today.”