Parents neglecting children's future

Thursday, October 13, 2005

A third of parents are not saving for their child's future according to new research from National Savings and Investments (NSI).

The findings show that parents often save for a holiday or a new car, but seem to be neglecting the future financial needs of their children.

The investment and savings provider, which is backed by HM Treasury, points out that a competitive property ladder and the rising cost of further education mean it is more important than ever that parents invest in their children's future.

"If parents wish to give their child the best start in life, it's vital that they begin saving early," said Karen Jones, marketing director of National Savings and Investments.

"We have offered inflation-beating savings for more than 30 years – they've certainly stood the test of time."

NSI, which has recently used Apprentice boss Alan Sugar in advertising, has also calculated that investment in one of their inflation-beating accounts could yield almost £16,000 over 18 years, roughly £5,000 more than certain high street accounts.

Earlier this month it was announced that vouchers from another government-backed plan, Child Trust Funds, were not being efficiently deposited in accounts.