CHILDREN'S ATTITUDES TOWARDS SAVING - UK - JULY 2019

CHILDREN'S ATTITUDES TOWARDS SAVING - UK - JULY 2019

Jul 2019 Mintel BankingN/A Price :
$ 1995

There are a number of types of children’s savings accounts, including easy-access accounts, regular savings accounts and fixed-term accounts or bonds. They tend to operate in the same way as savings accounts for adults, and are predominantly offered by banks and building societies. Some children’s savings accounts allow the child, if aged seven or above, to operate the account themselves, including the ability to deposit and withdraw money. Digital and online-only providers have entered the market by offering parents solutions aimed at managing pocket money that can also act as budgeting and saving tools, enabled by strict spending limits and restrictions while also facilitating financial education.

“Most children feel they have an element of the control in the way that they manage their money and spending, while parents do try to educate them in financial matters. Tools and services which help children better manage their finances are also becoming increasingly popular. Extra encouragement is required to help families discuss their finances, particularly among parents who are less confident when it comes to managing their own financial situation.”

Table of contents
OVERVIEW
What you need to know
Products covered in this report
EXECUTIVE SUMMARY
The market
Parents favour regular savings accounts
Figure 1: Products held by parents saving for their children aged 7-15, March 2019
Increase in junior ISAs is driven by stocks and shares products
Figure 2: Number of junior ISAs, amounts subscribed, 2013/14-2017/18
Families are struggling to save as children grow older
Figure 3: Saving activity, by age of children in the household, May 2019
Rate rise has little impact on at the top end of the children’s savings market
Companies and brands
Junior ISAs are set to grow their share of the market …
… whilst there are new developments in children’s pocket money apps
The consumer
Over 50% save for their child on a regular basis
Figure 4: Parents’ saving activity for children aged 7-15, March 2019
Most parents choose to save with a bank or building society …
Figure 5: How parents save for their children, March 2019
… while the majority are saving for long-term goals
Figure 6: Reasons for saving for children, March 2019
Just under 40% of children know what their parents are saving for
Figure 7: Children’s knowledge of their parents’ saving activities, March 2019
Children are given some control over their finances
Figure 8: Parents’ attitudes towards children’s money management, March 2018
Most 10-15 year olds receive money as a gift
Figure 9: Children’s source of income, March 2019
Two fifths of child savers save all or most of their money
Figure 10: Children’s saving activity, March 2019
Most children feel in charge of their spending money
Figure 11: Children’s attitudes toward money management, March 2019
Children are interested in features that will help them save more effectively
Figure 12: Children’s interest in features which help them save, March 2018
What we think
ISSUES AND INSIGHTS
Encouraging the savings conversation is half the battle
The facts
The implications
Better representation of women will create a more family friendly savings environment
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Parents favour regular savings accounts
Junior stocks and shares ISAs grew by 20% in volume in 2017/18
Families are struggling to save as children grow older
Rate rise has little impact for the best children’s saving accounts
CHILDREN’S SAVING PRODUCTS
Regular savings accounts are the most popular choice for parents
Figure 13: Products held by parents saving for their children aged 7-15, March 2019
Older parents are still favouring Child Trust Funds
Figure 14: Products held by parents saving for their children aged 7-15, by parents age, March 2019
Junior ISAs experience a strong increase in 2017/18
Figure 15: Number of junior ISAs, amounts subscribed, 2013/14-2017/18
Amount invested in NS&I bonds falls as the product nears its end
Figure 16: NS&I transactions with investors in children’s bonds, 2017 and 2018
MARKET DRIVERS
Families with older children find it harder to save
Figure 17: Saving activity, by age of children in the household, May 2019
Number of households with dependent children reaches 8 million
Figure 18: Number of households with dependent children*, by type of household, 2010-2017
Over 70% of mums are in employment
Figure 19: Employment rates for men and women with dependent children*, 1996-2018
Household savings ratio continues to rise
Figure 20: Real household disposable income per head vs Real household spending per head vs the household savings ratio, Q1 2008-Q3 2018
Increase in interest rates is not reflected at the top end of the children’s savings market
Figure 21: Average monthly quoted cash deposit and ISA interest rates, January 2012-April 2019
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Junior ISAs are set to grow their share of the market …
… whilst there are new developments in children’s pocket money apps
COMPETITIVE STRATEGIES
Junior ISAs set to grow share of market
One Family and Foresters Friendly target product …
… as does NS&I
Developments in children’s pocket money apps
RoosterMoney becomes the latest to offer a prepaid card
Gohenry partners with the NSPCC to encourage children to consider charitable giving
Best regular savers only offer the headline rate for one year
Brands use sponsorships and education to raise their profile
THE CONSUMER – WHAT YOU NEED TO KNOW
Over 50% save for their child on a regular basis …
Online-only accounts increase in popularity
Most parents are saving for long-term goals
Just under 40% of children know what their parents are saving for
Children are given some control over their finances
Most 10-15 year olds receive money as a gift
Most children feel in charge of their spending money
Children are interested in features that will help them save more effectively
SAVING FOR CHILDREN
Over half of parents are saving for their child on a regular basis
Saving for children is not priority for those with limited income
Figure 22: Parents’ saving activity for children aged 7-15, March 2019
HOW PARENTS SAVE FOR THEIR CHILDREN
Online-only challengers are becoming increasingly popular
Figure 23: How parents save for their children, March 2019
Parents look for alternative solutions as children grow older
Figure 24: How parents save for their children, by child’s age, March 2019
Opportunities to encourage more formal saving
Figure 25: How parents save for their children, by parents’ saving activity for children aged 7-15, March 2019
PARENTAL SAVINGS GOALS
Most parents are saving for the long term
Increasing engagement in investment options
Figure 26: Reasons for saving for children, March 2019
Higher earners are more likely to be saving for multiple reasons
Figure 27: Number of reasons for saving for children, by household income, March 2018
CHILDREN’S AWARENESS OF PARENTAL SAVINGS ACTIVITY
Just under 40% of children know what their parents are saving for
Figure 28: Children’s knowledge of their parents’ saving activities, March 2019
Opportunity to engage teenagers as their financial needs change
Figure 29: Children’s knowledge of their parents’ saving activities, by child’s age, March 2019
PARENTAL ATTITUDES TOWARDS CHILDREN’S MONEY MANAGEMENT
Online money management skills are sometimes overlooked
Figure 30: Parents ‘attitudes towards children’s money management, March 2018
Children of the less financially secure are given less exposure
Figure 31: Parents’ attitudes towards children’s money management, by financial situation, March 2018
New initiatives can encourage mums to become more involved
Figure 32: Parents’ attitudes towards children’s money management, by financial situation- CHAID – Tree output, April 2019
SOURCES OF CHILDREN’S MONEY
Children predominantly rely on gifted sources of money
Half of children aged 10-15 earn their own money
Figure 33: Children’s source of income, March 2019
Money management tools will appeal to older children
Figure 34: Children’s source of income, by child’s age, March 2019
CHILDREN’S SAVING ACTIVITY
Two fifths of child savers save all or most of their money
Figure 35: Children’s saving activity, March 2019
Children who are aware of their parents’ saving activity are more likely to save
Figure 36: Children’s saving activity, by children’s knowledge of their parents saving activity, March 2019
Earning money is vital in establishing a savings habit
Figure 37: Children’s saving activity, by children’s source of income, March 2019
CHILDREN’S ATTITUDES TOWARDS MONEY MANAGEMENT
The majority of children feel in charge of their spending money
Figure 38: Children’s attitudes towards money management, March 2019
Children relying on gifted money are less likely to discuss finances with their parents
Figure 39: Agreement with attitudes towards money management, by children’s source of income, March 2019
INTEREST IN FEATURES TO HELP CHILDREN SAVE
Household tasks can be used to help children meet their savings goals
Figure 40: Children’s interest in features which help them save, March 2018
Children of regular savers are more likely to be interested in tools that help them save
Figure 41: Children’s interest in features which help them save, by parents’ saving activity, March 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

Ask for discount before buying this report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Country :
  • Your Requirement
  • Security Code *
* denotes fields which must be completed

Buy This Report


Select License Type :

$ 1995
$ 1995

Do you wish to check sample of this report?

Have Query?


Research Assistance

For Enquiries, Call :

+1-800-998-4852US Toll Free

Email : sales@marketresearchhub.com

Back To Top