Parents are not saving enough for their children's future, says a new survey by National Savings and Investments (NS&I).
The government-backed research found that a third of parents do not have any money saved to support their children when they get older.
NS&I marketing director Karen Jones said: "If parents wish to give their child the best start in life, it’s vital that they begin saving early."
The research revealed that of the parents who had saved money for their children, almost half had not considered the effect of tax on the savings.
According to NS&I, more parents should invest money in a tax-efficient savings account or bond, instead of instant savings accounts and regular monthly savings accounts.
NS&I is offering a index-linked savings certificates and inflation-beating savings products to help parents make the most of the money they have saved for their children.
The Child Trust Fund allows a tax-free deposit of £1,200 each year and the Children's Bonus Bonds offer tax-free returns on longer-term investments for young people 21 and over.
A recent survey by social think-tank, the Joseph Rowntree Foundation, revealed that young people are finding it increasingly difficult to get a foot on the property ladder.
The poll found that there are 1.25 million households in Britain who earn too much to live in 'social' housing, but do not earn enough to buy their own property.To read more about Child Savings, click here.
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