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Having young kids supercharges savings habit - but as the kids get bigger, the habit gets smaller

New research shows that 44% of people with at least one child under six years old have increased their saving in the past two years. It seems, however, the number reduces as the age of the child increases.

For example, the research shows the much lower figure of 37% of people with at least one child between 7-12 years old are saving more now than they did two years ago. That drops still further to 33% for people with at least one child aged 13-17 years, and further still to 21% for people with at least one child aged 18 or over still living at home.

Looking at the numbers of people who are now saving less than they did two years ago, it goes in reverse order.

Fifty percent (50%) of people with at least one child aged 18 or over still living at home are saving less now, that drops to 47% for people with at least one child aged 13-17 years, dropping further to 44% for people with at least one child between 7-12 years old, and bottoms out at 41% for people with at least one child under six.

It is the same pattern when it comes to investing habits.

The findings form part of Scottish Friendly’s 2024 Family Finance Tracker, which examines the savings and investment habits of adults across the UK. The study of 2,600 adults shines a light on the reality of people’s financial situation and their aspirations.

Conducted by the Centre for Economics and Business Research (Cebr) on behalf of Scottish Friendly, the research findings additionally show that 35% of people who have never been a parent or guardian to children report that they are saving more now than they did two years ago. Thirty-eight per cent say they are saving less now.

Meanwhile, 26% of empty nesters report that they are saving more now than they did two years ago. Forty-one per cent say they are saving less now. 

Kevin Brown, savings specialist at Scottish Friendly, comments: “Are these good intentions that have simply run out of road or a case of life getting in the way of wanting to do the right thing? Either way, it feels like a missed opportunity to rally the family to drive forward saving into a Junior ISA – especially for those young families where the parent or guardian hasn’t had the time or means to set one up themselves.

“What currently stands in the way of family members, like grandparents, aunts and uncles, setting up a Junior ISA for the grandchild, niece or nephew, is one solitary line in the rule book – we believe that should be changed. And without delay.

“We’re not the only ones, our research shows that more than 1 in 3 UK adults would likely set one up if the rule was changed, that rises to nearly 1 in 2 for Greater London.

It’s time that little line that puts up a huge barrier was rewritten. Doing so could help to secure even more children’s financial futures across the UK.”

Contacts details:

Joe Danbury

07471350286

[email protected]

Notes to Editor:

The research was conducted by the Centre for Economics and Business Research (Cebr) and 3Gem. Comprised 2,600 UK adults aged between 18 years and 65+. Short-term financial goals were described to participants as being goals up to 6 months ahead, medium-term as being between 6 months to 5 years ahead,  and long-term as 5+ years ahead.

The questions pertinent to this announcement are pasted in below.

Q1. To what extent has your saving behaviour changed over the past two years? By ‘saving’ we mean putting money aside in a savings account/building society account/Cash ISA (NOT stocks and shares ISA)/NS&I savings products. Please do not include pensions.

I save a lot more now than I did two years ago

·        I save a lot more now than I did two years ago

·        I save slightly more now than I did two years ago

·        I save around the same amount as I did two years ago

·        I save slightly less than I did two years ago

·        I save a lot less than I did two years ago

·        I don’t know

Q2.  To what extent has your investing behaviour changed over the past two years? By ‘investing’ we mean putting money into financial schemes, property or shares, including stocks and shares ISAs. Please do not include pensions.

·        I invest a lot more now than I did two years ago

·        I invest slightly more now than I did two years ago

·        I invest around the same amount as I did two years ago

·        I invest slightly less than I did two years ago

·        I invest a lot less than I did two years ago

·        I don’t know

Q25.  If current rules were changed to allow other family members aside from parents/legal guardians to set up a child’s Junior ISAs, how likely would you be to consider doing so?

·        Very likely

·        Somewhat likely

·        Neither likely nor unlikely

·        Somewhat unlikely

·        Very unlikely

·        Don’t know

About Scottish Friendly

Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.

Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.

The Group has flourished through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.

www.scottishfriendly.co.uk

Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ

Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.

Disclaimer

Remember that the value of investments can go down as well as up and you could get back less than you paid in.

Past performance is no guide to future results. Tax treatment depends on individual circumstances which can change in the future.