Toys, but nothing in the piggy bank
Monday, 05 December 2005 12:00
UK children are set to receive £1.8 billion in presents this Christmas, but most parents are not saving for their futures.
Research from Yorkshire Building Society shows that the average child will have £150 worth of presents under the tree this year, to add to the £634 they already own.
But at the same time 51 per cent of parents are not putting money away for their children's futures.
"While not wishing to appear like Scrooge, it is nevertheless concerning that so many parents spend so much money on their children's 'must have' toys, yet one in two do not save anything at all for their children's future," said Chris Edwards, savings product manager at Yorkshire Building Society.
"In addition, many children become bored with presents very quickly and cast them aside, eroding the value of this generous expenditure."
And Yorkshire Building Society's research reveals that even those parents who are saving are thinking short term.
Thirty-one per cent of those who are saving are putting money away for a rainy day, 15 per cent are saving for school or university fees, just four per cent are saving for their child's house deposit, while a first car (three per cent) and weddings (two per cent) are also saved for.
But the focus on presents now rather than savings for later could be doing many of the nation's children a disservice.
Mr Edwards explained: "While accumulating a treasure trove of toys, many of which do not last a month, many children are not being given the benefit of real 'treasure' - savings that will be a real help to them in the future: they are 'toy rich, cash poor'.
"We urge all parents to think of what will be of greatest benefit to their children and make a new year's resolution to switch some of their toy expenditure to regular saving."
Comments
Newsletter sign up