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More parents make savings

More parents are saving for their children, research by Mintel has found.

Seventy-two per cent of parents with children aged up to 14 are putting aside money for their children. Forty-five per cent or 5.7 million are saving at least once a month, up by nearly one million since 2003.

The research found that around 6 per cent of grandparents – or 2.7 million – are saving regularly for their grandchildren but there are still around 3.5 million parents who save rarely or not at all for their children.

Most parents prefer to save in low-risk products, with the children’s savings account being the favourite of 38 per cent of those polled. The child trust fund is the second most widely held savings product for children, with 26 per cent of parents having opened an account.

But while more than 1.9 million CTF vouchers had been distributed up to August 20, only 46 per cent had been deposited.

Senior financial analyst Sarah Hitchcock says: “Some parents will have lost or mislaid the voucher while others are yet to make up their minds as to which account to go for.”

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