‘Third of parents have raided children’s savings for financial emergency’
One in three parents admits having dipped into their children’s savings to plug a gap in a financial emergency, a survey has found.
Some 32% of parents confess to having taken money from their offspring’s savings in an emergency.
While more than four in 10 (45%) of those earning less than £15,000 a year have withdrawn money in an emergency, around a quarter (24%) of those earning £75,000 or more have also done so, Nationwide Building Society found.
Some 41% said they are put off saving for their children as they are worried they may urgently need the money in the future, according to the survey of 2,000 parents.
But despite some parents occasionally needing to raid piggy banks, many appeared confident about being able to build a considerable nest egg for their child by the time they reach adulthood.
The research found parents expect to have saved around £7,000 on average for their child by the time they turn 18.
The study marked the launch of a new children’s savings account from Nationwide called Future Saver.
It found that parents in the North East of England expect to have saved more than £9,000 for their child by the time they reach 18 on average, while those in Wales expect to have saved around half this amount.
Tom Riley, Nationwide’s director of savings, said: “Raising a family is an expensive business, so it’s not always easy for families to put money aside.”
Here are the average amounts parents expect to have put aside for their child by the time they reach 18, according to Nationwide Building Society:
– London, £8,855
– East Midlands, £7,174
– Scotland, £6,601
– Northern Ireland, £6,038
– South East, £7,412
– West Midlands, £5,617
– East of England, £7,007
– Yorkshire and the Humber, £6,939
– North East, £9,082
– North West, £6,916
– South West, £5,969
– Wales, £4,481