Parents make children's savings a priority

December 31st sees the end of government contributions to children's savings via the Child Trust Fund, but it seems parents are still determined to save for their children's futures.

New research from Halifax, has found that school-aged children benefitted from a two per cent increase in their savings on average, with eight to 11 year-olds seeing the biggest increase seven per cent.

However, the research showed that when it comes to pre-school children parents are cutting back on savings, with a three per cent decrease for under fives and a drop of eight per cent for babies under one-year.

Flavia Palacios, head of Halifax savings products, said: "As the government ends contributions to Child Trust Funds it's more important than ever that parents look carefully at how much they can afford to put aside as a nest egg for their children."

She added that it's encouraging that parents are saving for their children and advised putting aside little and often for their futures.

CashQuestions.com recently urged parents to find the best savings interest rates on the market and put money away for their children's future, despite the lack of government support.
 

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-12-31 10:15:50 © Moneyextra.com