According to a survey commissioned by Nordea, three-quarters of Finnish parents save for their child, every fourth parent regularly. Fathers and mothers save equally often, and saving for girls is just as common as saving for boys. The most frequent amount of savings is 30 euros a month. Every fourth parent added that the child’s grandparents also save for the child.
- I was delighted that the majority of the parents said that they save for their children even occasionally. They also start saving quite soon after the child is born, which means that the period of saving is longer. However, regular saving for children is much more common in Sweden, for example. A survey made in Sweden last year indicated that two-thirds of the respondents saved for their child regularly, says Olli Kärkkäinen, Nordea’s Private Economist.
Few parents think that saving for their children is not necessary. The most common reason for not saving is that the parents do not have enough money, even if they would very much like to save. One-third of the parents of children aged less than six years who do not yet save for their child planned to start saving later.
- It’s understandable that it’s not always financially possible to save. For instance, it’s not necessarily easy for families with small children to save from the home care allowance, says Olli Kärkkäinen.
Two-thirds of the parents who save for their children stated that they do not save for any specific purpose. Every fifth parent said the objective is a driving licence, whereas less than every tenth parent stated a first home as the purpose for saving.
- I was a bit surprised that a driving licence is still the most common purpose for saving today. On the other hand, it is a concrete cost item that can be covered with savings. The use of the savings is largely left for the future or for the young person to decide on. For the first home, savings can be a good nest egg, says Olli Kärkkäinen.
The most common form of saving for children is transferring money to a savings or current account. Every fifth parent says they use investment funds for saving for their child, but few parents (4%) save for their child by investing in listed shares.
- The period of saving for children is often reasonably long, more than ten years, in which case the effect of compound interest becomes highlighted. In fact, it would be advisable to think of other options besides saving in an account, says Olli Kärkkäinen.
For further information:
Olli Kärkkäinen, Private Economist, tel 040 735 6030