Toys, but nothing in the piggy bank

Christmas presents sometimes last only until Boxing Day, but if you contribute to a child’s savings account, it could make a real difference to their financial future. It is the season for giving and receiving, but parents are often reluctant to ask for cash instead of a present for their child.
A study by the Building Societies Association (BSA) showed that 40 per cent of adults had considered giving a child money instead of or as well as a gift. This figure rises to 60 per cent among parents.
However, very few parents actually request that friends and family contribute to a savings account for their child at Christmas or on their birthdays.
Brian Morris, Head of Savings Policy at the BSA said: “These figures are very revealing. Clearly, many people are happy to contribute financially to a child’s future, but only a small proportion of parents have ever asked for money for their own child. Christmas is a perfect time to kick-start a savings habit for your child or grandchild and parents should think about asking friends and family to help build a nest egg.
“By the time the Christmas period is over, many toys are unwanted and put away never to be played with again. This year, why not ask your family and friends to give your child something that will last longer than Boxing Day – a savings top up, your children will thank you for it in the long-run.”
Chris Edwards, Savings Product Manager, Yorkshire Building Society commented, “We urge all parents to think of what will be of greatest benefit to their children and make a new year’s resolution to switch some of their toy expenditure to regular saving.”
The BSA also highlighted the benefits of a Child Trust Fund (CTF), saying that if the maximum £1,200 investment were made each year, on their 18th birthday a child would receive £36,000.