A father of three has said he plans on saving for his youngest son's future and will aim to put aside £30,000 by the time he is an adult. David Margett says he is less concerned about his children's inheritance and wants to help them get onto the property ladder and through university.
Mr Margett, 59, who lives in Westerleigh, South Gloucestershire feels saving money for his son's is a wise investment, in light of the cost of living crisis. However, many parents in the South West have said they expect their childrens lives to be harder than their own with 10 per cent of parents in the region also planning to save between £30,000 and £50,000.
Mr Margett, whose eldest two children are already grown up, said: "I feel my children are better off becoming independent and responsible through a good education than having it (inheritance money) when they are in middle age.
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“I expect to have in excess of 30k to support university education for my son.”
Research by online investment service Wealthify says almost half of parents in the South West feel obligated to save for their children's future but were 10 per cent less likely to save specifically for their child's higher education. They are more committed to saving to help their children on the property ladder.
However, only a quarter of parents surveyed in the South West had financial support from their own family members when buying a house. Showing parents in the region are becoming significantly more generous generationally when it comes to financially supporting house purchases.
Similarly, 31.8 per cent of parents in the South West plan to contribute financially to their children’s weddings – the lowest percentage of parents to do so compared to anywhere else in the UK.
Simon Holland, Chief Product Officer, Wealthify comments: “As the cost of living rises across the country, it’s no surprise that parents are finding it difficult to save for their children. However, as time goes on, big purchases like a car or home will become much less attainable for our kids – so, it’s important we help to give them a financial head start if we are able to.
“You can open up a Wealthify Junior Stocks and Shares ISA (JISA) to start investing towards your child’s future from as little as £1. What’s more, you can spread the cost by inviting family and friends to contribute. If you don’t think you can afford payments every month, no pressure – Wealthify JISAs are flexible, so you can pay in as much as you like, as often as you like, ready for your child to access when they turn 18.”
In fact despite being the second-most frugal parents in the country when it comes to helping their children buy their first cars, South West mums and dads are still contributing an average of £25,173.91 towards home purchases.
