British Parents don’t save for their children’s education

British parents are not saving for children’s education.

A new report found that less than 50 per cent of families are saving. Instead parents rely on supporting their bright offsprings from everyday income. Furthermore, the global study found that only French and Mexican families were less likely to put away money to provide for their children.

The report

The Value of Education: Foundations for the future report found that over 70 per cent of the UK’s families said that they are paying for education from their current income. Furthermore, they also said that funding their children’s education is more important than contributing to retirement savings.

Taking on Debt

What’s more shocking is that more than 40 per cent also admitted they would take on debt, to support their child through university or college. The research found that the main obstacle is planning. Parents don’t want to put off such purchases as holiday or house renovation to save for their children.

Junior ISA

Start investing for your child’s future today. Open a Junior ISA with Scottish Friendly from £10 a month.

Get £50 cashback when you pay in at least £50 using KidStart

Capital at risk. £50 early exit fee applies within the first 5 years.

My Select (Junior ISA) lets you use your child’s tax allowance to invest for their future. You can start from just £10 a month and once set up friends and family can help out too.

Receive £50 cashback when you payment into the plan are at least £50 and the plan has been set up for more than 30 days.

The value of investments can go down as well as up and your child could get back less than you have paid in. All money paid in is a gift to the child and only they can withdraw it once they are 18. If you transfer your Junior ISA to another provider or the child withdraws the money before the end of 5 years a £50 fee will be applied.

Find out more here.

Scottish Friendly

Scottish Friendly is one of the UK’s leading mutuals.

Offering a wide range of financial products and services, Scottish Friendly is enthusiastic about saving and investing, professional when it comes to investing your money and helpful in the service it provides.

Scottish Friendly is a mutual which means they don’t have shareholders. What does this mean for the customer? In simple terms, as Scottish Friendly don’t have to pay shareholders dividends, all the profit they make is used for the benefit of their customers.

Scottish Friendly is looking after assets worth more than £2.6 billion (as at 31/12/15) and have over 490,000 members. Of course, history or size is no guide to future performance.

Savvy Mamas