2022
9
UK Saving and Investing for Children Market Report 2022
2022-07-07T04:05:57+01:00
OX1103003
2195
152751
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Report
en_GB
“The children’s savings and investment market is set to be impacted heavily by the rising cost of living. Lower-income households, with less disposable income, will struggle to contribute to children’s…

UK Saving and Investing for Children Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Saving and Investing for Children Market Report identifies consumers’ attitudes towards saving and investing for children, the impact of the cost of living, and future innovations in the children’s saving market. This report covers the saving for children market size, market forecast, market segmentation and industry trends for the UK children’s saving market.

 

Current Market Landscape 

The rising cost of living will have an impact on investing for children due to the increased financial pressure on households, and families with lower household incomes will be disproportionately affected. Investing for children and other long-term ambitions will likely be put on hold or reduced by parents struggling against rising prices.

 

Children’s Saving Market Share and Key Industry Trends

Children’s saving providers are likely to come under greater competition from the investment market, as some parents who are investing for children will look for higher returns.

Many households will be forced to prioritise essentials with discretionary spending and long-term saving put on the back burner. Several consumers will continue investing for children, but risk aversion will deter many others.

  • 70% of UK parents have invested money for their children.
  • 53& of UK adults add money to their children(s) savings accounts monthly.
  • 48% of UK parents manage their children(s) saving accounts online via a website.

Future Investing for Children Trends

Child-friendly apps focusing on managing savings and financial education are leading innovations in the investing for children market. This offers the opportunity for children’s savings providers to partner with FinTech to provide a comprehensive product encompassing savings management, as well as financial education for children.

Future investing trends will see many households start to explore sustainable and ethical children’s saving products, as these products will increase in prominence.

Read on to discover more details or take a look at all of our UK Financial Services Market Research.

 

 

Quickly Understand

  • The impact of the COVID-19 recovery on investing for children.
  • The impact of the rising cost of living for the children’s savings market.
  • Competitive strategies and launch activity within the children’s saving market.
  • Important factors involved when choosing a children’s savings provider.
  • Attitudes towards the children’s savings market.
  • Explores saving for children market size.

 

Covered in this Report

Products: Child Trust Funds, Junior Individual Savings Accounts, Children’s Saving Accounts.
Brands:  John Lewis, Nutmeg, Natwest, Rooster Money, GoHenry, Money Missions, Tridos, Wealthify, Beanstalk.

 

Expert Analysis from a Specialist in the Field

This report, written by Jennie Bryans, a leading senior analyst in the Financial Services sector, delivers in-depth commentary and analysis to highlight current trends in the chilren’s saving market and add expert context to the numbers.

The children’s savings and investment market is set to be impacted heavily by the rising cost of living. Lower-income households, with less disposable income, will struggle to contribute to children’s savings on top of paying out for essentials. Providers should focus on accessibility for all, by removing fees for opening accounts, as well as promoting round-the-change features, to ensure as many consumers as possible can maintain savings habits.”

Jennie Bryans
Financial Services  Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for children’s savings and investing market
      • Figure 1: Category outlook, 2022-27
    • The market
    • 7 million households in the UK have child savings
    • JISAs reach 1 million milestone
      • Figure 2: Number of JISA accounts subscribed by year, 2012/13-2019/20
    • Companies and brands
    • Apps move to the fore of innovative launch activity
    • The consumer
    • 85% have money saved for children
      • Figure 3: Who is saving for children, 2022
    • Cash savings products remain the most popular option
      • Figure 4: Ownership of child savings products, 2022
    • 67% are saving regularly for children
      • Figure 5: How often money is saved for children, 2022
    • Three fifths have less than £5,000 saved for children
      • Figure 6: Amount saved/invested for children, 2022
    • Online management of savings preferred
      • Figure 7: Management of child(ren)’s savings, 2022
    • Competitive interest rate is the key differentiator for consumers
      • Figure 8: Important children savings features, 2022
    • Educating children about saving is essential
      • Figure 9: Attitudes towards children’s savings, 2022
  3. Issues and Insights

    • Rising inflation will impact many families’ ability to save for children
    • Educating children about saving moves to the fore
    • Appetite for children’s investments ramps up
  4. Market Size

    • Rising cost of living set to impact the children’s savings market
      • Figure 10: Category outlook, 2022-27
    • 7 million households in the UK have child savings
    • COVID-19 boosted savings, but rising inflation is set to cut growth
  5. Market Segmentation

    • Child Trust Funds continue to reach maturity
      • Figure 11: Number of CTFs, by year they reach maturity, 2020/21-2028/29
    • JISAs reach 1 million milestone
      • Figure 12: Number of JISA accounts subscribed by year, 2012/13-2019/20
    • NS&I children’s savings boosted by JISA deposits
      • Figure 13: Children’s savings with NS&I, 2018/19-2020/21
  6. Market Environment – Savings Market

    • Number of households with children continues to rise
      • Figure 14: Total households with dependent children, 2011-20
    • Three quarters of children live in two-parent households
      • Figure 15: Proportion of households with dependent children present, by family type, 2012-21
    • Live births continue to fall…
    • …as the average age of mothers at childbirth increases
      • Figure 16: Annual births figures, 2000-20
  7. Market Environment – Economic Context

    • The conflict in Ukraine will hurt the UK economy
    • Inflation is the key concern in 2022 for consumers, brands and the economy
    • Consumers’ financial wellbeing has slipped from its recent high point…
      • Figure 17: Household financial wellbeing index, 2016-22
    • Interest rates rapidly increasing
      • Figure 18: Interest rates, 2017-22
    • Household savings grew by nearly 7% in 2021
      • Figure 19: Household deposit balances, 2016-21
  8. Competitive Strategies and Launch Activity

    • John Lewis and Nutmeg collaborate to offer JISA
    • NatWest pockets Rooster Money
    • GoHenry expands business propositions
    • Increased focus on sustainable children’s savings
  9. Who is Saving for Children?

    • 85% have money saved for children
      • Figure 20: Who is saving for children, 2022
    • Fathers are more likely to have saved than mothers
      • Figure 21: Who has money saved for children, by parental status, 2022
    • Saving for children remains a family affair
  10. Ownership of Child Savings Products

    • Cash savings products remain most popular…
    • …but investment products gaining traction
      • Figure 22: Ownership of child savings products, 2022
    • Wealthier households are more likely to hold JISAs and investment products
      • Figure 23: Child savings products, by household income, 2022
  11. How Often Money is Saved for Children

    • 67% are saving regularly for children
      • Figure 24: How often money is saved for children, 2022
      • Figure 25: How often money is saved for children, by household income, 2022
    • Younger parents are keen to accumulate savings more regularly
      • Figure 26: How often money is saved for children, by age of parent, 2022
  12. Amount Saved for Children

    • Three fifths have less than £5,000 saved for children
      • Figure 27: Amount saved/invested for children, 2022
  13. Management of Child Savings

    • Online management of savings preferred…
    • …but a quarter continue to manage savings at a branch
      • Figure 28: Management of child(ren)’s savings, 2022
    • Apps to move to the fore for savings management
      • Figure 29: Preferable method of managing child(ren)’s savings, 2022
    • Appeal of branches declines
  14. Important Factors in Choosing a Child’s Saving Provider

    • Competitive interest rate is the key differentiator for consumers
      • Figure 30: Important children’s savings features, 2022
    • 32% value an app to manage children’s savings
    • Generational distinctions for children’s savings features
      • Figure 31: Response to selecting ‘A competitive interest rate’ as any rank, by generation, 2022
  15. Attitudes towards Children’s Savings

    • Educating children about saving is essential
      • Figure 32: Attitudes towards children’s savings, 2022
    • Most savers committed to increasing deposits despite rising prices
      • Figure 33: Response to ‘I/we plan to increase the amount that’s added into my child(ren)’s account over the next 12 months’, by household income, 2022
    • 62% are interested in investing for children
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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*databooks not available with UK B2B Industry reports.

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