Parents who delay opening a savings account for their child until age five could be missing out on around £3,794, according to a study of 2,000 mums and dads with children under 18. Once they do start saving, parents put away an average of £63.24 a month for their child's future.
However, 11% of parents do not open a savings account for their child at all. At the same contribution rate, that could amount to £13,659 by the time the child turns 18.
Early saving initiative
The figures are based solely on money paid in and do not account for interest that could have been earned, meaning the potential value of the savings could be significantly higher.
The research was commissioned by Skipton Building Society to support its initiative encouraging early saving. Eligible parents of children aged three and under receive £25 when they open a Junior Cash ISA in branch and deposit £50 by 29 December 2026.
The building society partnered with The Mum Club to host a brunch for new mothers, offering expert guidance on the financial milestones their children may face in the future.
Why parents delay
Of the 66% who did not set up a savings account before their child's first birthday, 26% were too focused on other financial priorities during their baby's first year. Another 26% wanted to wait until their child was older, while 21% intended to open an account but never got around to it.
However, 55% wish they had started saving for their child earlier than they did, with 39% now recognising the benefits of getting started early, and 33% worried about the future costs their child will face.
More than half (53%) of parents with children under 18 believe their child will face greater financial challenges than they have experienced. Buying a first home was cited as the biggest challenge (43%), while 38% are worried about university costs. In addition, 26% are concerned about the cost of learning to drive.
Gifts and contributions
The survey, conducted by OnePoll, found 32% of parents deposit money if gifted by family members, and 31% put money aside on birthdays. In fact, 75% feel adding money to savings is a more valuable gift for their child than toys or other presents, and of these, 34% said physical gifts are often quickly forgotten.
As a result, 48% of those parents believe money would help their child more in the future. A further 40% believe it will help teach the child the value of saving, while 31% would rather money went towards future ambitions such as learning to drive, university or buying a home.
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. That's completely understandable, but our research shows just how much difference getting started early can make.”
She added: “Many parents are surprised by the impact those first few years can have. Starting from birth rather than waiting until age five could mean thousands of pounds more in savings by the time a child reaches adulthood. Starting to save early can make a real difference over time, which is why we're encouraging parents and grandparents to take that first step towards building a savings habit for their child.”
Lauren Webber, co-founder of The Mum Club, said: “Like many parents, I spent so much time thinking about my child's immediate needs that I didn't always stop to think about everything that comes next. The early years go by incredibly quickly, and it's often only when you start talking to other parents that you realise how important those early conversations and plans can be. Connecting with other parents can be a great way to share experiences, build confidence and start thinking about the future.”
