Table of Contents
Executive Summary
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- The five-year outlook for children’s savings and investing market
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- Figure 1: Category outlook, 2022-27
- The market
- 7 million households in the UK have child savings
- JISAs reach 1 million milestone
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- Figure 2: Number of JISA accounts subscribed by year, 2012/13-2019/20
- Companies and brands
- Apps move to the fore of innovative launch activity
- The consumer
- 85% have money saved for children
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- Figure 3: Who is saving for children, 2022
- Cash savings products remain the most popular option
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- Figure 4: Ownership of child savings products, 2022
- 67% are saving regularly for children
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- Figure 5: How often money is saved for children, 2022
- Three fifths have less than £5,000 saved for children
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- Figure 6: Amount saved/invested for children, 2022
- Online management of savings preferred
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- Figure 7: Management of child(ren)’s savings, 2022
- Competitive interest rate is the key differentiator for consumers
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- Figure 8: Important children savings features, 2022
- Educating children about saving is essential
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- Figure 9: Attitudes towards children’s savings, 2022
Issues and Insights
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- Rising inflation will impact many families’ ability to save for children
- Educating children about saving moves to the fore
- Appetite for children’s investments ramps up
Market Size
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- Rising cost of living set to impact the children’s savings market
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- Figure 10: Category outlook, 2022-27
- 7 million households in the UK have child savings
- COVID-19 boosted savings, but rising inflation is set to cut growth
Market Segmentation
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- Child Trust Funds continue to reach maturity
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- Figure 11: Number of CTFs, by year they reach maturity, 2020/21-2028/29
- JISAs reach 1 million milestone
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- Figure 12: Number of JISA accounts subscribed by year, 2012/13-2019/20
- NS&I children’s savings boosted by JISA deposits
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- Figure 13: Children’s savings with NS&I, 2018/19-2020/21
Market Environment – Savings Market
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- Number of households with children continues to rise
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- Figure 14: Total households with dependent children, 2011-20
- Three quarters of children live in two-parent households
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- Figure 15: Proportion of households with dependent children present, by family type, 2012-21
- Live births continue to fall…
- …as the average age of mothers at childbirth increases
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- Figure 16: Annual births figures, 2000-20
Market Environment – Economic Context
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- The conflict in Ukraine will hurt the UK economy
- Inflation is the key concern in 2022 for consumers, brands and the economy
- Consumers’ financial wellbeing has slipped from its recent high point…
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- Figure 17: Household financial wellbeing index, 2016-22
- Interest rates rapidly increasing
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- Figure 18: Interest rates, 2017-22
- Household savings grew by nearly 7% in 2021
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- Figure 19: Household deposit balances, 2016-21
Competitive Strategies and Launch Activity
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- John Lewis and Nutmeg collaborate to offer JISA
- NatWest pockets Rooster Money
- GoHenry expands business propositions
- Increased focus on sustainable children’s savings
Who is Saving for Children?
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- 85% have money saved for children
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- Figure 20: Who is saving for children, 2022
- Fathers are more likely to have saved than mothers
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- Figure 21: Who has money saved for children, by parental status, 2022
- Saving for children remains a family affair
Ownership of Child Savings Products
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- Cash savings products remain most popular…
- …but investment products gaining traction
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- Figure 22: Ownership of child savings products, 2022
- Wealthier households are more likely to hold JISAs and investment products
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- Figure 23: Child savings products, by household income, 2022
How Often Money is Saved for Children
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- 67% are saving regularly for children
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- Figure 24: How often money is saved for children, 2022
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- Figure 25: How often money is saved for children, by household income, 2022
- Younger parents are keen to accumulate savings more regularly
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- Figure 26: How often money is saved for children, by age of parent, 2022
Amount Saved for Children
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- Three fifths have less than £5,000 saved for children
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- Figure 27: Amount saved/invested for children, 2022
Management of Child Savings
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- Online management of savings preferred…
- …but a quarter continue to manage savings at a branch
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- Figure 28: Management of child(ren)’s savings, 2022
- Apps to move to the fore for savings management
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- Figure 29: Preferable method of managing child(ren)’s savings, 2022
- Appeal of branches declines
Important Factors in Choosing a Child’s Saving Provider
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- Competitive interest rate is the key differentiator for consumers
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- Figure 30: Important children’s savings features, 2022
- 32% value an app to manage children’s savings
- Generational distinctions for children’s savings features
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- Figure 31: Response to selecting ‘A competitive interest rate’ as any rank, by generation, 2022
Attitudes towards Children’s Savings
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- Educating children about saving is essential
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- Figure 32: Attitudes towards children’s savings, 2022
- Most savers committed to increasing deposits despite rising prices
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- Figure 33: Response to ‘I/we plan to increase the amount that’s added into my child(ren)’s account over the next 12 months’, by household income, 2022
- 62% are interested in investing for children
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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