Parents could be missing out on saving £4,000 for their children by failing to open an account until they reach the age of five. A study of 2,000 mothers and fathers with children under 18 found that once they begin putting money aside, they save an average of £63.24 a month towards their child's future.
However, parents typically wait until their child is around five years old before setting up a savings account. This means they could be missing out on approximately £3,794 that could have accumulated from birth.
Furthermore, 11% never open 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 amounts deposited and do not take into account any interest that could have been accrued over time, meaning the potential worth of the savings could be considerably greater.
Initiative to encourage early saving
The research was commissioned by Skipton Building Society to support its initiative promoting early saving, with eligible parents of children aged three and under receiving £25 when they open a Junior Cash ISA in branch and deposit £50 by 29 December 2026.
The building society joined forces with The Mum Club to host a brunch for new mothers, providing expert advice on the financial milestones their children may encounter in the years ahead.
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."
Reasons for delaying and regrets
Of the 66% who did not open a savings account before their child's first birthday, 26% were too preoccupied with other financial commitments during their baby's first year.
A further 26% preferred to wait until their child was older, while 21% had every intention of opening an account but never quite got round to it.
However, it also came to light that 55% wish they had begun putting money aside for their child sooner than they did, with 39% now acknowledging the advantages of starting early, and 33% concerned about the financial pressures their child will face in the future.
Concerns about children's financial future
More than half (53%) of parents with children under 18 believe their child will encounter greater financial difficulties than they themselves have experienced.
Purchasing a first home was cited as the most significant hurdle they expect their child to face (43%), while 38% are anxious about the costs of university.
Additionally, 26% are worried about the expense of learning to drive and getting on the road when their child reaches their late teenage years.
The survey, carried out by OnePoll, found that many parents top up their regular monthly contributions, with 32% depositing money when it is gifted by family members.
Birthdays represent another popular occasion to set money aside for 31% of parents.
Indeed, 75% feel that contributing money to savings is a more worthwhile gift for their child than toys or other presents, and of these, 34% said physical gifts are often quickly forgotten.
Consequently, 48% of parents who would prefer their children to receive money rather than toys believe it would prove more beneficial to them in the long run.
A further 40% feel it would help teach their child the importance of saving, while 31% would prefer money to go towards future aspirations such as learning to drive, university or getting onto the property ladder.
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."
