Skipton Building Society research highlights children's savings gap

Research commissioned by Skipton Building Society indicates that parents may miss out on approximately £3,794 by waiting until a child is five years old to open a savings account. Based on a study of 2,000 parents of children under 18, those who save for their children contribute an average of £63.24 per month.

The study found that 11 per cent of children do not have a savings account at all. For these individuals, the total missed savings could reach £13,659 by age 18, excluding interest or investment growth. Among parents who delayed opening an account until after their child's first birthday, 26 per cent cited other financial priorities as the primary reason, while another 26 per cent preferred to wait until the child was older.

Additionally, 53 per cent of parents surveyed believe their children will face greater financial challenges than they did, with 43 per cent identifying the purchase of a first home as the most significant future concern.