After a prolonged period of squeeze, family finances are finally beginning to improve. Low inflation and rising wages are helping incomes go further and boosting financial confidence. However, these improvements are not necessarily benefitting the children’s savings market. Affordability is still an issue for many. Increases in confidence often lessen the perceived need to save and the continuing low interest is off-putting to savers. Furthermore, the challenges in achieving the very high savings targets set by parents and others saving for reasons that are associated with high costs, such as university, are such that children’s savers are wont to become demoralised and disengaged from the savings market altogether.

This lack of commitment to saving can be damaging to those wishing to save on behalf of their children as the rising costs of raising a child to the age of 18, and realistically considerably beyond, mean that starting to save earlier has never been more important. Yet, children’s savers do little to help themselves. There is significant disparity between sentiment and proactive action. Whilst many parents consider it important to encourage their children to manage their money, this sentiment does not always translate into proactive action.

Much of this can be attributed to a lack of know-how. Whilst financial education is now on the national school curriculum, parents did not receive this education when they were younger and, consequently, many lack the financial nous to take practical financial planning steps. This presents children’s savings providers with an opportunity to play a larger role in their customers’ lives. Through the design of new savings products which are linked to specific saving targets, for example, providers can help parents and other children’s savers achieve their goals. Capitalising on this opportunity will ensure providers build more long-lasting and trusting relationships with their consumers, something that will benefit both parties.

This report examines these, and other, issues and developments in the children’s saving and investment market and considers their implications for providers. In addition, Mintel’s exclusively commissioned consumer research explores parental attitudes and behaviours, providing insight into savings motivation, intentions and actions.


AER Annual Equivalent Rate
CPI Consumer Price Index
CTF Child Trust Fund
GDP Gross Domestic Product
HMRC HM Revenue & Customs
ISA Individual Savings Account
JISA Junior Individual Savings Account
Junior SIPP Junior Self-Invested Personal Pension
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