Table of Contents
Executive Summary
-
- The market
- Children’s savings accounts and CTFs are the most popular products
-
- Figure 1: Children's savings products, March 2014
- Market factors
- Family finances remain squeezed
- Growing childbirth rates
- Regulatory changes in the children savings and investment market
- Companies, brands and innovation
- Main retail banks dominate cash savings market
- 24% decline in adspend on children’s savings and investment products
- NatWest and RBS bring back children’s piggy banks and launch fun app
- Nationwide simplifies its children’s savings product range
- Family Investments making children financially fit for the future
- The consumer
- More than three in five parents save for their children
-
- Figure 2: Saving on behalf of children, March 2014
- Majority of parents contribute regularly to their children’s savings
-
- Figure 3: Frequency of parents’ contributions to children's savings, March 2014
- More than one in four non-parents save on behalf of children on special occasions
-
- Figure 4: Frequency of non-parents’ contributions to children's savings, March 2014
- Less than two fifths of children receive pocket money regularly
-
- Figure 5: Pocket money for children, March 2014
- Two in five CTF holders would consider switching to Junior ISAs
-
- Figure 6: Switching to junior ISAs, March 2014
- Parental attitudes towards saving for children
-
- Figure 7: Agreement with the following statements relating to saving for children, March 2014
- What we think
Issues and Insights
-
- Lack of parental awareness begs for increased promotion of Junior ISAs
- The facts
- The implications
- Today’s children are becoming a generation of savvy savers
- The facts
- The implications
- Branch closures present a challenge for the children’s savings market
- The facts
- The implications
Trend Application
-
- Birthday presents centred around children’s savings
- Grandparents’ role is strengthened in households’ financial mix
- Targeting the next generation of savers
Market Drivers
-
- Key points
- Family finances remain squeezed
-
- Figure 8: Monthly change in RPI and average weekly earnings, January 2009 – February 2014
- Figure 9: How respondents describe their financial situation, by presence of children, March 2014
- Consumer sentiment for the coming year still low for parents
-
- Figure 10: Consumer sentiment for the coming year, by presence of children, March 2014
- Inflationary pressures are subsiding
-
- Figure 11: Average annual changes in the RPI, CPI and Bank of England base rate, UK, 2005-13
- Increase in childbirth rate
-
- Figure 12: Number of live births and Total Fertility Rate (TFR), England and Wales, 2006-2012
- Personal finance education in schools
- Regulatory changes in the children savings and investment market
- Budget 2014: Junior ISAs
-
- Figure 13: Junior ISA subscription limits, 2001-14
- Switching from CTF to Junior ISAs allowed from April 2015
Who’s Innovating?
-
- Key points
- NatWest and RBS bring back children’s piggy banks
- Nationwide simplifies its children’s savings product range
- Technology assists with promoting children’s savings
- Fun apps for children
- Online tools for parents
- Family Investments making children financially fit for the future
- Greater focus on current accounts in recent years…
- … but potential for rising competition with switching CTFs to Junior ISA
Market Size
-
- Key points
- Children’s savings accounts and CTFs are the most popular products
-
- Figure 14: Ownership of children's savings products, March 2014
- Junior ISAs slowly gaining momentum
-
- Figure 15: Number of Junior ISAs, amounts subscribed and average subscription, 2011/12-2012/13
- Nearly £5 billion held in CTF accounts
-
- Figure 16: Total number of accounts and market value, by CTF account type – all accounts opened by 5 April 2012
Market Share
-
- Key points
- Main retail banks dominate cash savings market
-
- Figure 17: Ranking of the largest providers of savings accounts, by proportion of customers, January 2014
- Investment providers are also notable players in the market
Companies and Products
-
- Barclays
- Company description
- Children’s savings product range
- Distribution mix
- Recent activity
- Family Investments
- Company description
- Children’s savings product range
- Distribution mix
- Recent activity
- HSBC
- Company description
- Children’s savings product range
- Distribution mix
- Recent activity
- Lloyds Banking Group
- Company description
- Children’s savings product range
- Distribution mix
- Recent activity
- Nationwide
- Company description
- Children’s savings product range
- Distribution mix
- Recent activity
- NS&I (National Savings and Investments)
- Company description
- Savings product range
- Distribution mix
- Recent activity
- RBS Group
- Company description
- Children’s savings product range
- Distribution mix
- Recent activity
- Santander
- Company description
- Children’s savings product range
- Distribution mix
- Recent activity
- The Children’s Mutual
- Company description
- Savings product range
- Distribution mix
- Recent activity
Brand Communication and Promotion
-
- Key points
- 24% decline in adspend on children’s savings and investment products
-
- Figure 18: Total advertising expenditure on children’s savings and investment products (including junior ISAs), 2011/12-2013/14
- Top three advertisers account for 80% of market adspend
-
- Figure 19: Top advertisers of children’s saving and investment products (including junior ISAs), 2011/12-2013/14
- Junior ISA advertising shrinking drastically
-
- Figure 20: Total advertising expenditure on junior ISA products, 2011/12-2013/14
- A note about adspend
Channels to Market
-
- Key points
- Majority of children’s products still offered in-branch only
-
- Figure 21: Children’s savings product availability, by distribution channel for opening accounts, April 2014
- Decline in the UK branch network
- Availability of online applications is picking up, but only slowly
Saving on Behalf of Children
-
- Key points
- Survey background
- More than three in five parents save for their children
-
- Figure 22: Saving on behalf of children, March 2014
- Grandparents make up the majority of non-parents saving for children
- Affluence strongly determines ability to save
-
- Figure 23: Saving on behalf of children, by household income, March 2014
- Figure 24: Saving on behalf of children, by socio-economic status, March 2014
Children's Savings Products
-
- Key points
- Children’s savings accounts are the most widely owned product
-
- Figure 25: Children's savings products, March 2014
- Only 16% of parents hold Junior ISAs for their children
- Few products are used for children’s savings
-
- Figure 26: Number of children’s savings products held, March 2014
- Figure 27: Children's savings products, by number of products held, March 2014
- Bonds are more popular among grandparents who save for children
-
- Figure 28: Children's savings products, by individuals saving on behalf of children, March 2014
- Cash-based savings products lead in popularity
Frequency of Contributions to Children's Savings
-
- Key points
- Majority of parents contribute regularly to their children’s savings
-
- Figure 29: Frequency of parents’ contributions to children's savings, March 2014
-
- Figure 30: Frequency of parents’ contributions to children's savings, by working status and household income, March 2014
- More than one in four non-parents save on behalf of children on special occasions
-
- Figure 31: Frequency of non-parents’ contributions to children's savings, March 2014
- Children show desire for gift money
-
- Figure 32: What children and teens want for their birthday, March 2014
-
- Figure 33: Demographics of children who selected ‘money’ as they choice of present, by gender and age, March 2014
Pocket Money for Children
-
- Key points
- Less than two fifths of children receive pocket money regularly
-
- Figure 34: Pocket money for children, March 2014
- Older children are more likely to receive pocket money on a regular basis
-
- Figure 35: Pocket money for children, by age of children, March 2014
- Figure 36: Monthly pocket money, by age of children, March 2014
Switching to Junior ISAs
-
- Key points
- 40% of CTF holders would consider switching to Junior ISAs
-
- Figure 37: Switching to junior ISAs, March 2014
- Parents with older children are less likely to switch
-
- Figure 38: Switching to junior ISAs, by age of children, March 2014
Parental Attitudes towards Children's Savings
-
- Key points
- 29% of parents prefer to save in low-risk products despite the low returns
-
- Figure 39: Agreement with the following statements relating to saving for children, March 2014
- Only a minority of parents are interested in less traditional children’s savings products
- Junior ISA awareness is still low
- More than two in five parents encourage their children to save
- Online access important to less than a quarter of parents
-
- Figure 40: Frequency of contributions to children’s savings, by agreement with statement regarding accessing children’s savings account online, March 2014
Appendix – Market Drivers
-
-
- Figure 41: GfK Consumer confidence barometer – UK, January 1994 – February 2014
- Figure 42: Total number of live births and Total Fertility Rate (TFR), England and Wales, 2006-2012
-
Appendix – Channels to Market
-
-
- Figure 43: UK bank and building society branch networks, 2002-12
-
Appendix – Saving on Behalf of Children
-
-
- Figure 44: Saving on behalf of children, by demographics, March 2014
-
- Figure 45: Saving on behalf of children, by demographics (continued), March 2014
-
Appendix – Children's Savings Products
-
-
- Figure 46: Children's savings products, by demographics, March 2014
-
- Figure 47: Children's savings products, by demographics (continued), March 2014
- Figure 48: Children's savings products, by demographics (continued), March 2014
-
- Figure 49: Children's savings products, by demographics (continued), March 2014
- Figure 50: Number of children's savings products, by demographics, March 2014
-
Appendix – Frequency of Contributions to Children's Savings
-
-
- Figure 51: Frequency of parents’ contributions to children's savings, by demographics, March 2014
-
Appendix – Pocket Money for Children
-
-
- Figure 52: Pocket money for children, by demographics, March 2014
-
- Figure 53: Pocket money for children, by frequency of parents’ contributions to children’s savings, March 2014
-
Appendix – Switching to Junior ISAs
-
-
- Figure 54: Switching to junior ISAs, by demographics, March 2014
-
- Figure 55: Frequency of parents’ contributions to children’s savings, by switching to Junior ISAs, March 2014
-
Appendix – Parental Attitudes towards Children's Savings
-
-
- Figure 56: Parental attitudes towards children's savings, by demographics, March 2014
-
- Figure 57: Parental attitudes towards children's savings, by demographics (continued), March 2014
-
Back to top