Parents advised to start saving for children sooner rather than later
Parents advised to start saving for children sooner rather than later
Parents should try to save as early as possible for their children, it has been suggested.
Placing cash into savings accounts such as ISAs or fixed rate bonds in important for households on a wide range of different income scales in the wake of the global economic downturn.
That is the view of Dave Rodgers, managing director of the Debt Advice Foundation, who has said that putting money aside as early as possible can help to tackle both planned and unforeseen family costs.
"It's always a good idea to save money whilst you can as it helps to minimise the impact of any future expenditure," he advised.
For example, Mr Rodgers noted that while it is impossible to say for certain how universities will be funded in the coming years as the country continues to adapt to the government's austerity measures, parents could consider the possibility of saving for their children's educational future.
"It's probably sensible to assume that cost may well become a barrier to entry," he added.
Mr Rodgers' comments came after the publication of LV='s annual Cost of a Child report last month (February 24th 2011), which indicated that the cost of raising a child had increased by around 50 per cent in the last eight years.
The study showed that parents and family now have to spend an average of more than 210,000 when bringing up their child up until their 21st birthday, which is the equivalent of 10,040 annually or 27.50 every day.
Despite these rising costs, the Debt Advice Foundation official noted that planning in advance by building up sufficient savings over a significant period of time can "allow parents to help their children in the future".
Meanwhile, Jasmine Birtles of moneymagpie.com said recently that increasing inflation in the UK could affect those with savings accounts.
According to its opening MoneyMood study of 2011, Legal & General has found that the number of people across the country who are actively planning to save this year has increased to its highest level since 2005.
The data showed that in response to the question "thinking of your current finances, would you say you are in the mood to save or spend at the moment?", 69 per cent of Britons indicated that they want to store cash for the future in the coming months.
Mark Gregory, executive director of savings at Legal & General, stated: "This shows a significant swing away from 'spending' compared to the same period last year and appears to signal a resurgence in the 'saving mood'."
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