Saving for your children
Mum's the word when it comes to saving for your children. Giving their children a financial flying start, by setting aside money throughout their childhood, is important to many people. Mums are more likely to make financial provision for their offspring, with 60% of those actively contributing to a child’s savings and investments being women6
Researchers deduced that this appears to fit in with a broader theme where women tend to connect investing to outcomes for their family more than to their own needs and prioritise saving for your children. A tailing-off in contributions is evident as children get older. Just over two thirds (67%) of new parents start investing or saving for their new-borns, falling to 54% by the time children reach secondary-school age.
Cash isn’t always king
It’s important to make sure that the money works hard for the long term. The research highlights that most savings are held in premium bonds or cash products, such as cash Junior Individual Savings Accounts (JISAs). Having recently celebrated its tenth birthday, the JISA allowance has increased over the years from £3,600 a year in April 2011 to £9,000 a year today – currently stocks and shares JISAs make up just 3% of all accounts.
Choosing cash can limit the impact of parents’ savings, especially in times of rising inflation, as the real value of cash will erode over time. Although not guaranteed, investment products have historically delivered better returns over the long term, making it advisable to consider the options.
Boring Money, 2021