Money worries, not new babies, keep dads awake at night
- Concerns over being a good father fade after baby’s birth
- Money concerns become the top worry after a child is born
With Father’s Day, new research out today shows that a worrying number of fathers-to-be underestimate the financial reality of having a child. According to UK mutual life and investments organisation Scottish Friendly, worries about being ‘a good father’ soon give way to the financial responsibility of being a parent once a child is born.
Nearly half of all soon-to-be dads (47 per cent) surveyed by Scottish Friendly said that their biggest concern was whether or not they would be a good dad. However, once a child is born, a father’s focus of concern shifts to the practicalities of being a parent – especially the cost.
Finances top the list of things keeping new dads awake at night, with over one third (37 per cent) saying that being unable to provide for the child or being unable to afford new things are their biggest concern.
Calum Bennie, communications manager at Scottish Friendly comments:
We all know that, when anybody starts a family, there’s quite suddenly less money available. Along with the sleepless nights, making substantial financial adjustments is considered one of the steepest learning curves after becoming a parent.
Setting up a savings account to support your child is a sensible option for most parents, even those without huge disposable incomes. Yes, finding spare cash to put aside is tough, but all dads, expectant or otherwise, would be able to provide something for their child in the future if they are able to start saving now. Even £10 per month could make a difference and provide some peace of mind for fathers hoping to support their children later in life.
Almost half of the dads surveyed (48 per cent) started saving for their child’s future after they were born. A fifth (19 per cent) began putting money aside when the mother of their child was pregnant; while 24 per cent of the dads surveyed confessed that they had not started saving yet.
To help parents achieve their savings goals, the friendly society offers its ‘My Select (Junior ISA)’, a long term tax-free investment Junior ISA for children under the age of 18. The My Select (Junior ISA) is an investment based Junior ISA that can be opened for as little as £10 a month, a lump sum of £50, or a combination of both. Parents or guardians are then able to invest in a mix of assets that are specifically risk and return graded to best suit the investment goals for their child.
Regardless of how much you are putting aside each month, if you only put money into a standard savings deposit account it will be eroded away by inflation, which is currently outstripping the interest offered on many deposit savings accounts. Setting up in an investment ISA or JISA could make more sense at the moment.
The value of the investment can go down as well as up and the child could get back less than has been paid in whereas investments in a deposit account are guaranteed. Tax-free means the fund the plan invests in grows free of income and capital gains tax (other than tax on dividends from UK shares). Tax treatment depends on your individual circumstances. Tax law may change in the future. To find out more about the My Select (Junior ISA) visit, www.scottishfriendly.co.uk/fathersday