Parents make tough choices in order to save for their children

New research suggests that parents are being forced to cut back on luxuries in order to set aside enough money for their children's future.

More than eight in ten (83 per cent) of respondents to a Family Investments survey say they are cutting back on the amount of beauty products they buy to ensure they can save enough to put in savings accounts for their children, while 81 per cent say they are reducing expenditure on clothes.

Just six per cent of the parents questioned said they would not be willing to change the amount they spend on themselves in order to save more for their children.

"In our experience saving for a child's future is a parental obligation, so when things are getting tough this is the last area that parents are willing to cut back on," commented Kate Baker, head of savings and investments at Family Investments.

"Despite the strain of the current economic climate, 85 per cent of parents will be continuing to top up their child's trust funds by the same amount, it's just a matter of cutting back on little luxuries when things are tight to ensure their children's savings don't suffer."

Another way in which families could cut back on expenditure is to shop around for the best available home insurance.

However, it is important not to neglect home insurance policies altogether as this could be financially ruinous in the event of a natural disaster such as a flood.

09/10/2008 18:05:09