Parents' worry over children's financial future

16 June 2014

Nearly two-thirds of parents are concerned their children will struggle to find a job amid uncertainty over their financial future.

Some 62% of parents questioned by Lloyds Private Banking think their children will struggle in the job market, while 34% of mums and dads are concerned about the level of debt their kids may have.

Another 36% are worried that their children are not careful with their money and just 15% are not concerned about their children's financial future at all.

In an effort to help out, the vast majority (80%) have invested some money for their children before they reach the age of 10. Some 42% have put money away in trust funds and 24% in stocks and shares.

In terms of investment vehicles, property is is seen as one of the most popular ways of saving for your children, with 51% saying it is the best way to save. However, only 15% of parents have invested in this way, with Lloyds suggesting this is because it is seen as a long term investments and funds are an easier way to save.


Sarah Deaves, investment advice and private clients director at Lloyds Bank, said:  "Although the UK economy is beginning to show strong signs of recovery, many are still concerned about their family's future and investing early on behalf of their children, usually before they even begin school. While a large percentage of families are investing their wealth in financial products, many still see property as a big investment.

"Our research shows that while the majority of parents are quite clear where they think the best long term investment is for their children's future, nearly 20 percent simply don't know. This suggests that good financial advice is as important as ever, especially with such long term and important investment decisions."

By setting aside a little amount at a time and taking the time to create a financial plan, parents may be able to help their children and give themselves some piece of mind."

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