Disclosure: this is a paid collaboration.
Are you saving enough for your kids’ future? I’ll put my hand up straight away and admit that I’m definitely not. I’m far from alone in that though, as recent research by Shepherds Friendly shows.
Times are getting harder but there are so many things we have to save for. Plus I think it’s fair to say that my children’s generation is going to need more help than mine did.
Things like driving lessons, house deposits, tuition fees and weddings have only gone up in cost. So, given current trends, it’s important to save for their future.
The research found that 43% of the 2,000 parents surveyed are considering saving in this way.
Of this number, 65% would pay in between £10 and £50 a month, while 35% felt they could invest more than £50.
Focusing on specific goals is often said to be the best way of saving for the future. Just under a third said that they wanted their children to put their savings towards housing deposits.
Meanwhile, tuition fees and first cars accounted for 20% and 10% respectively.
Of course, affordability is a big consideration for many and, again, this is something I can very much relate to.
With three children, the increasing cost of living and one income, we’re often unable to put anything away. We do so when we can, but would like to be able to make more regular savings.
It’s important that we do though. We live in the second most expensive region of the UK so, assuming the kids don’t up sticks when they’re older, we’re going to have to save a large amount.
There are other ways towards saving enough, however. For example, a Junior ISA like those available from Shepherds Friendly.
They allow family and friends to contribute on behalf of the child. What’s more, any growth on your child’s savings will be tax-efficient.
With the new tax year fast approaching, it’s a good time to consider saving. Particularly if you choose to open a Junior ISA, as this maximises your opportunity to invest up to the Junior ISA annual limit for your child’s future.
The infographic below illustrates more of the survey’s findings and also includes considerations that should help you work out how much you would ideally save for your children’s future.