A poll of 1,000 parents with children aged 18 to 30 and 1,000 parents with children aged 0 to 17 has been conducted by Coventry Building Society, which explores expectations v.s reality when it comes to financially supporting their children.
The research demonstrates a stark contrast between what parents are expecting to fund when their children grow up, and what they actually end up paying for, highlighting the importance of parents taking simple steps such as putting money aside every month in preparation for the big events in their children’s lives.
• Parents of children aged 18-30 said they will shell out up to £43,189.85 on milestone events (including university fees, rent, a wedding, their first car and a deposit for a house) for their grown up children.
• The average parent with children of school age or under expects to pay a maximum of £29,060 for their children during their adult years, falling £14,000 short of the total needed.
• Only 37 per cent of parents with children aged 18-30 saved for their children’s future throughout their childhood.
• 21 per cent of parents with children under 18 have no money saved for their future whilst 62 per cent have saved £1,000 or less.
• 40 per cent of parents with children aged 18-30 said that they wish they had started saving for their children’s future earlier, rising to 70 per cent amongst parents with children under 18.
Rachel Haworth, Head of Marketing at Coventry Building Society
“It is easy to think that children will grow up and be able to support themselves, but in today’s society it is likely that they will need some help. Higher tuition fees, rising house prices and overall increases in living costs all make it harder for young people to achieve the things which appear on most people’s life checklist.
“We would encourage all parents to get into the habit of putting money aside every month to help prepare for the big events in their children’s lives. Even taking simple steps such as saving child benefit payments into a high interest savings account, such as our Family Saver account can make a big difference in the long term.
Coventry Building Society Family Saver Account
• Easy-access, online account
• 3.00% AER/gross p.a, including a 1% AER first year bonus
• Child Benefit payments to be paid directly into the account
• This is a variable rate product
For more information on the Family Saver account visit www.thecoventry.co.uk/familysaver
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