Parents who wait until their child turns five to start putting money aside could be missing out on almost £4,000 towards their child's future, according to research commissioned by Skipton Building Society.
A study of 2,000 mums and dads with children under 18 found that once they start saving, they put away an average of £63.24 a month for their child's future. But parents typically wait until their child is around five years old before setting up a savings account, meaning they could miss out on around £3,794 that could have been built up from birth.
Delayed accounts cost thousands
However, 11% don't get a savings account at all, which could amount to £13,659 at the same contribution rate by the time their child turns 18. These figures are based solely on the money paid in and do not account for any interest that could have been earned over time, 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.
Parents regret waiting
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, it also emerged 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.
Future financial challenges
More than half (53%) of parents with children under 18 believe their child will face greater financial challenges than they themselves have experienced. Buying a first home was cited as the biggest challenge they expect their child to face (43%), while 38% are worried about university costs. In addition, 26% are concerned about how much learning to drive and getting on the road will cost when they reach their later teenage years.
The survey, conducted by OnePoll, found many mums and dads supplement their regular monthly contributions, with 32% depositing money if gifted by family members. Birthdays are another popular opportunity to put money aside for 31%.
In fact, 75% feel adding money paid into 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 about. As a result, 48% of the parents who would rather their children receive money than toys believe it would help them more in the future. A further 40% believe it will help teach their child the value of saving, while 31% would rather money went towards future ambitions such as learning to drive, university or buying a home.
Encouraging early saving habits
Alex Sitaras, head of savings at Skipton Building Society, which is bringing back the Skipton Castle Money Box for families who open an account to help inspire saving from a young age, 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.
"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.
"The good news is that building a savings pot doesn't require huge amounts. Even small, regular contributions can add up over time and create meaningful opportunities later in life.
"Whether it's helping with the cost of education, supporting a first car purchase or contributing towards a future home deposit, starting early can help give children a stronger financial foundation for the years ahead."
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.
"That's why we're delighted to be working with Skipton Building Society to bring families together and help them feel more prepared for the years ahead."
