Yorkshire: Parents invest in toys, not savings

06 December 2005
Parents would rather spend billions on toys than invest in savings for their child's future, says Yorkshire Building Society.

The building society found that while UK parents plan to spend £1.8 billion on toys for Christmas gifts this year, more than half have not set up any form of child savings.

Chris Edwards from Yorkshire Building Society said: "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'."

In a survey of 800 parents, the building society found only 49 per cent of parents save regularly for their children - but that the majority of mums and dads will spend £150 on toys this Christmas.

Moreover, the survey found that even though a third of parents are saving, they are doing so only for a "rainy day" and are not saving on a serious level.

Only four per cent are saving for a house deposit for their offspring, three per cent for a car and only two per cent for a wedding.

Recent figures have shown thousands of government-issued Child Trust Fund (CTF) vouchers - given out by the government to encourage parents to save for their child's future - have not been invested.

To read more about Child Savings, click here.

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