Bank of Mum and Dad
Published
Only 1 in 10 parents are currently investing for their children, according to new research from Alliance Witan. The investment trust company has partnered with former marathon world record holder Paula Radcliffe to encourage parents to prioritise financial literacy and think longer term about their children’s financial future. Currently, just 25 per cent of parents build cash savings for their children.
Of those parents who are currently investing, more than half say their primary motivation is to put their children in a better financial place than they were in themselves. And nearly half express the wish to gift their child a lump sum once they become an adult. Specific top ambitions for parents who save are to get their children on the property ladder and helping with university fees further down the line.
Paula Radcliffe comments: ‘We all worry about what the future holds for our children – it comes with the parental job description. But there are so many things that parents can do to help set their kids on a good financial pathway. Something as simple as starting to invest for their future can really be transformative. By putting aside money to invest each month means that when it comes to university fees or trying to get on the housing ladder, there's a pot of money ready to give them a helping hand. And when they're old enough, talking to them about what their money is doing is a great way to engage them in financial literacy.’
