Children's savings for single parents far more difficult
Following recent news that many parents are saving towards their child's future because of the Child Trust Fund scheme set up by the government two years ago, research shows that those most likely to be able to add to their child's account are married parents, with things looking far more bleak for the children of single parents when it comes to saving for their future. According to recent reports, the CTF scheme had encouraged many parents to save towards the future of their child, opening an account with the £250 provided by the government and then being able to add up to £1200 each year themselves.
However, a survey of 800 parents with children aged under 25 years showed a very different situation for single parents. According to the results of the survey around 42% of married parents added to the savings account for their child's future, whereas for single parents this figure was less than half, at 17%. Even when single parents were able to put some aside for their child's savings, it was less than the amount put aside by married parents, with around £122 for each child under the age of 16 in the last six months from single parents compared to £189 for married couples.
One spokesperson from Engage Mutual stated: ' Rising childcare and education costs, along with increases in the cost of living, mean that today's parents are feeling growing financial pressures in bringing up children. For lone parents, living on a single income, these pressures may be especially hard to deal with. However, parents should not despair of saving for their children's future. Tax exempt child savings plans and Child Trust Funds provide simple and affordable means to saving for children.'
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