Single parents struggling to save

Single parents are struggling to save for their children’s future – just one in six have made regular payments into a child’s savings account - according to research by Engage Mutual.

With the number of single parent families on the increase, and despite last week’s budget bringing increased Child Benefit and child tax credit in a bid to reduce childhood poverty, the research reveals that single parents are less likely to save for their child’s future as married parents. Just one in six (17%) single Mums and Dads with children under 16 made regular payments into a child’s savings account in the last six months, compared to 42 per cent of couples.

Furthermore, of those who are able to save, single parents are putting aside significantly less than their married counterparts, saving an average of £122 per child under 16 in the last six months, compared to those married (or living as married), who saved £189 for each of their children.

As part of its 3GB campaign examining how money impacts family relationships, Engage Mutual asked a GB representative sample of 795 parents with children under the age of 25 how they had helped their children financially in the last six months.

Tighter Purse Strings for Lone Parents

As well as finding it difficult to save for their children’s future, lone parents are less likely than couples to give their children under 25 pocket money. 45 per cent of single parents have given their children a regular allowance averaging £27.30 a month over the last six months, compared to 50 per cent of married parents or those living as married who have given an average of £36.50 a month over the last six months.

Financing Education

However, when it comes to financing their offspring’s education, single parents are leading by example. Seventeen per cent of single parents have helped fund their children’s education or pay back their student loan, making an average contribution of £2,929 compared to 16 per cent of married couples or couples living together who contributed £2,366.

Karl Elliott, 3GB Spokesperson for Engage Mutual said: “Rising childcare and education costs, along with increases in the cost of living, mean that today’s parents are feeling growing financial pressures in bringing up children. For lone parents, living on a single income, these pressures may be especially hard to deal with.

“However, parents should not despair of saving for their children’s future. Tax exempt child savings plans and Child Trust Funds provide simple and affordable means to saving for children. By making small and regular payments into these accounts, parents can save towards the costs of their children’s education and first steps onto the property ladder.”