More than a third of parents - 36 per cent - do not have a savings account set up for their child, according to recent research conducted by the Co-operative Bank.
The study found that parents in the UK are struggling to set aside any extra cash for their offspring's future due to rising living costs. In fact, fewer than one in seven are able to save more than £50 a month for their child, with the average amount coming in at £10 a month.
Unfortunately, this could be storing up debt problems for the young people in their future as parents will be unlikely to be able to help out with university fees, for example. But for 65 per cent of mothers and fathers, their purse strings are tied and they can only wish that they were able to contribute more financially to their child's future.
James Hillon, head of savings at the Co-operative Bank, commented on the research: “It's a tricky time for parents as they try to do their best for their child's future, while providing for them at a time when living costs are continually rising.”
He added that even the little that parents are able to save is “definitely worthwhile” and will help out children in later life.
