With the recession hitting hard, concern is growing over the many families who have no savings or investments and how many are with debt, relying on the savings they have to pay bills and meet basic living costs.
According to Abbey Savings, nearly 30% of British parents with young children have no savings or investments they can turn to in time for difficulty. It also means they don’t have money to use for their children’s future.
The costs of raising a child are rising as of course if everyday living and as a result those parents who do have savings are finding they need to dip into these withdrawing an over of 28% of their total savings this year.
For a typical UK household with 2 working parents, childcare from 6 months to age 14 could cost over £330 per month.
There’s also the increasing cost of education, with a three year university degree course alone costing over £34,000 for tuition fees, travelm books and living costs, including rent, bills and household items.
If you are struggling to pay bills and don’t have any savings to turn to, it may be time to get debt help – the sooner you take action the better as debt problems don’t usually resolve themselves.
Around 30% of parents do intend to start saving which is positive and good news.
As Reza Attar-Zadeh of Abbey Savings, commented ‘It’s vital for everyone to have a rainy day fund even more so for parents, who must juggle the need to build up a nest egg for their children’s future with the need to provide for the here and now.’
There are many Savings accounts available which allow savers to put aside money each month to build up a lump sum over time.
Savings accounts available include
- Tesco Internet Saver – minimum balance of just £1 and you can add regular monthly savings === > Get more info
- Alliance & Leicester Online Saver Issue 6 – this has a minimum balance of £1,000 and you can pay money into your account whenever you want === > Get more info
- Abbey’s Fixed Rate Monthly Saver – save from £20 to £250 month === > Get more info