Families could be missing out on thousands of pounds because parents delay opening a savings account for their children, new research suggests. A study of 2,000 parents with children under 18 found that not having a savings account opened until the age of five could mean losing out on £4,000.
Average monthly contributions and missed savings
The research found that parents put an average of £63.24 a month towards their child's future. However, they typically wait until the child is around five years old before setting up a savings account, meaning £3,794 that could have been built up from birth is missed out on.
Skipton Building Society's findings also revealed that around 11% of children do not get a savings account at all, meaning they miss out on around £13,659 by the time they turn 18 at the same contribution rate.
Interest not included in calculations
It is important to note that the data is based on the money paid in and does not consider any interest earned over time. This means the potential value of the savings could be even higher.
Initiative to encourage early savings
The findings come as part of the building society's initiative to encourage early savings. Eligible parents of children aged under 18 receive £25 when they open a Junior Cash ISA in branch and deposit £50 by December 29, 2026.
Alex Sitaras, head of savings at Skipton Building Society, said: “The first year of becoming a parent can feel completely overwhelming.
“Between adjusting to a new routine, managing household finances and navigating countless new responsibilities, opening a savings account for your child isn’t always at the top of the to-do list.
“Starting from birth rather than waiting until age five could mean thousands of pounds more in savings by the time a child reaches adulthood.”
The building society has also partnered with The Mum Club to host a brunch for new parents, offering expert guidance on the financial milestones their children may face in the future.
