In your community, how much do parents save for their kids?

Although the average amount varies by region, parents do accumulate thousands of pounds to give their kids an advantage when they are trying to climb the property ladder or pay for college

In order to help their children in the future, parents nationwide are contributing thousands of pounds to savings accounts; one in ten are setting aside nearly 50,000 pounds for the next generation.

Parents are starting their children's savings accounts and Junior ISAs (JISAs) early to give them a head start because of the rising costs of property and higher education. Over 1,000 kids have more than 100,000 in their Junior ISA. However, each UK city has a different amount of an advantage.

Savings platform Flagstone found that nearly three-quarters (74.6%) of parents save money for their children, with an average of 18,212 saved nationwide.

Most parents who are saving have saved between the most commonly reported range of 5,000 and 9,999 (21point 3 percent). Although only 10% of parents nationwide have saved this much, the second most common savings amount is between £40,000 and £49,000.

"The fact that so many parents are already saving for their children's futures is encouraging," said Claire Jones, Flagstone's head of strategic relationships and new business. Parents' savings have more time to grow the earlier they begin. With consistent saving, even modest sums can accumulate over time.

But where they invest their savings is just as important as how much they save. One choice that allows parents to save tax-free until their child turns 18 is a junior ISA. Beyond that, locating accounts with higher interest rates can significantly impact how much money kids ultimately receive.

Children's average savings by city.

By city, parents in London save the most on average (23,859), with Edinburgh coming in second (23,669). Birmingham, Cardiff, and Sheffield round out the top five.

Why do parents save money?

With these savings, four out of ten parents plan to attend college or school. For this reason, more than one-third (34.9%) intend to transfer it when their kids turn 18 and start college.

As they increase their borrowing to meet the rising cost of living, it may come as no surprise that students in England are completing their degrees with government loans on average of 53,000, according to data from the Student Loans Company for 2024 - 2025. This represents a jump of 10% in just one year.

For parents, helping their kids climb the property ladder is the second-largest savings objective (38.9%). This probably reflects the rising cost of homes. According to the most recent HM Land Registry report, which was released on August 20, prices increased by 3p7 percent in the 12 months ending in June, making the average UK property 269,000, or about 9,000 more than it was a year ago.

A majority of parents (52.4%) do not disclose their savings plans to their kids. The main cause is that their children (27 percent) are too young to comprehend. A further 13 percent want the money to be a surprise, and another 10 percent believe their kids should start saving for themselves.

However, not all parents are as reticent. The majority (47.6%) acknowledged being candid with their kids about their savings.

More open communication about money may be influenced by the economic climate, such as the cost-of-living crisis. According to a 2023 Legal & General survey, 92% of parents in the UK now discuss money with their kids more.