Save your sweets for university

Half of British parents do not give their children pocket money, says research from Engage Mutual Assurance. Instead, they are saving the money that children might spend on sweets to secure their future. The insurance company is researching how money affects family relationships and surveyed 948 parents with children under 16.

According to the research 41 per cent of parents are making provision for their children’s future through some sort of savings plan. These parents have paid into savings accounts regularly over the last six months. This is an increase over the 27 per cent figure recorded in the March survey. When it comes to savings, it seems that fathers are more conscious than mothers. Some 45 per cent of fathers save regularly for their children’s future, compared with 39 per cent of mothers.

The research also found that 34 per cent of the parents who gave their children pocket money also paid into savings accounts. Those in the North East are more likely to get pocket money, with 65 per cent of parents providing an allowance for their young children. In contrast, in the West Country, just 39 per cent of parents give their children an allowance.

Preparing for children’s future is a key issue with the rising cost of childcare and education, as Karl Elliott points out: ‘With today’s children facing increasing costs of university and living when they reach adulthood, it is important that parents make an effort to prepare them for the financial challenges of adulthood. However, the choice between treating children today and giving them a helping hand in the future can be a fine balance.’

He adds: ‘Giving younger children pocket money not only helps to educate them about the value of money, but also teaches them important life skills such as saving and budgeting.  On the other hand It is also important that parents invest money for their children’s future.  By contributing little and often to government Child Trust Funds, parents and other relatives could save a useful sum tax free to help their children get a foot on the ladder when they reach adulthood.’