Parents need an average £43,190 to financially support their children after they turn 18, according to a new study – £14,000 more than parents with younger kids estimate.
Coventry Building Society asked parents with children aged 18-30 how much they shell out on their grown-up children, and compared it to how much parents with children under 18 expected to pay. According to the survey, parents with younger children underestimate the costs by around £14,000, and 62% have put less than £1,000 aside for their child’s future.
If you’re looking to start saving for your child’s future sooner rather than later, take a look at the latest rates available on specialist children’s saving accounts. And you can visit our baby and child section for reviews and advice to help you get a good deal on products for your kids.
Typical parental costs
According to the 1,000 parents surveyed that have older children of 18 or over, these are the major milestone events they’ve helped to fund:
- First car: £2,334
- Gap year: £896
- University fees: £10,772
- Rent: £8,415
- House deposit: £9,831
- Wedding: £6,903
- Present / handout: £4,041
77% never imagined they would continue to provide financial support to children once they’d entered adulthood, and four in ten have had to cut back on their own spending to do so.
Saving for your children
Which? Money expert Ian Robinson says: ‘With university fees and rental costs going up – and the first rung on the property ladder still unreachable for many first-time buyers, parents are under increasing pressure to contribute financially well beyond a child reaching adulthood.
‘Although Child Trust Funds are no longer available, you can help out by putting something aside for your children as soon as they are born. Taking advantage of tax-free saving opportunities such as new Junior Isas for under-18s, which will launch in November 2011, will help your family nest egg to grow.’
Our saving rates booster tool is a quick and easy way to see how much more interest you could be earning and help make your savings go further.