Single parents struggle to save for kids
March 28, 2007 by admin
Filed under News, News-Banking
Single parents are finding it difficult to manage their banking, meaning that few are able to put money aside for their children.
According to Engage Mutual Assurance, only one in six lone parents make regular payments into a savings account for their children.
A study carried out by the firm found that married couples are much more likely to save for their child’s future, with 42 per cent making regular payments compared to just 17 per cent of single parents.
This is despite increased child benefit and child tax credit which were announced during the last Budget.
“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,” said Engage spokesman Karl Elliott.
“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,” he added.
Parents are advised to put at least some money aside on a regular basis to help pay for their child’s education and perhaps give them a starting point as they try to make their way onto the property ladder.
