1 in 5 dad and mom haven’t any money saved for teenagers’ future milestones
Parents feel unprepared for the cost of supporting their kids into adulthood – with many worried they won’t be able to contribute towards university tuition or living expenses
Many parents feel unprepared to help their kids with future milestones(Image: Getty Images)
A fifth of parents have not put aside any cash to support their offspring once they become adults, new research has shown. A survey of 2,000 parents with youngsters under 18 discovered that 23% feel unprepared for the cost of supporting their kids into adulthood.
While 79% have already begun setting money aside to help finance future milestones like stepping onto the property ladder or covering wedding expenses, more than half worry they won’t be able to contribute toward university tuition or living expenses. At the same time, 46% fear they will need to postpone retirement to keep supporting their offspring through their early adult phase.
One in five have no savings at all(Image: Getty Images)
Kathleen Brooks, research director at investment platform XTB, which commissioned the research, said: “Many parents are recognising the importance of starting early and building savings gradually over time to ease that pressure.
“While future costs can feel daunting, even small, regular contributions made over a long period can make a meaningful difference and help families feel more financially prepared for the milestones ahead.”
Based on Bank of England inflation targets, analysts from the platform estimate the total cost of a three-year UK university degree could exceed £91,000 by 2040-rising from roughly £23,000 a year to over £30,000 annually.
For those living and studying in London, the total cost could approach £119,000, with yearly costs rising from around £30,000 to nearly £40,000.
Many parents feel underprepared due to rising everyday living costs and the challenge of planning for multiple children.
Despite these hurdles, most still want to help fund accommodation (47%), tuition fees (41%), and general living expenses (33%). As such, on average, parents have £5,508 saved for their child heading to university.
To help, 42% try and put money aside regularly(Image: Getty Images)
In total, 42% put money aside regularly, 33% save occasionally, and 5% have set aside a one-off lump sum.
Eight in 10 parents believe supporting children into adulthood is a much longer financial commitment now than for previous generations, with parents expecting kids to move out at an average age of 26.
The study, conducted by OnePoll, revealed the most popular saving methods are children’s savings accounts (39%), Junior Cash ISAs (24%), and general savings accounts (22%).
Respondents said saving would be easier if they knew how much to save (22%), understood how to invest (18%) and had a better understanding of the different savings options available (18%).
Kathleen Brooks, from XTB, added: “Many parents are understandably focused on setting money aside, but it’s also important to think about how those savings are working overtime.
“The earlier families start planning, the more opportunity they may have to build a financial foundation that can support their children through major life moments, whether that’s university, buying a first home or taking other important next steps into adulthood.
“Creating a financial plan early can provide greater flexibility when those major life milestones eventually arrive.”
