Quarter of families without savings, survey finds

www.moneynews.co.uk > General finance > Quarter of families without savings, survey finds

Quarter of families without savings, survey finds

Tue 10th Nov 2009

Around 28 per cent of families with young children have no savings and are facing an increasing cost of living, according to Abbey Savings.

For two parents working full time, childcare can cost them £332 a month and if a child is cared for from the age of six months to 14 years, this works out to over £53,000.

Reza Attar-Zadeh, director of savings and investments with the company, said it was vital for parents to learn to juggle financing the here-and-now while trying to build a nest egg of their children's future.

Parents are being forced to drop the amount they put to one side each year as they attempt to keep on top of rising living costs, with a quarter reducing this sum by £3,300 a year.

In addition, mums and dads are being forced to turn to existing savings to help make ends meet, with 28 per cent admitting they had to withdraw £1,800 of funds this year alone.

Andre Hagger from Moneynet.co.uk said there is a need to break the "buy now, worry about it later" cycle of paying through loans and credit cards if people are to start investing their finances for a rainy day.

However, around a third of parents now say they intend they start saving to safeguard for the future.

Click here for more general finance news

Related News : General finance
	Citizens Advice welfare applauds government
	Confused.com energy defends British Gas
	Bank of Ireland passes stress test
	Tesco Mobile deal 'courts consumers'
	Scottish Widows Investment Partnership notes favourable response
	Customers should fix now, says moneysupermarket.com energy
	Confused.com highlights importance of getting the best deal
	Prices on the rise, says moneysupermarket.com energy
	Bank of Scotland economic report 'suggests transitional phase'
	Clydesdale and Yorkshire Banks security advice issued