Almost a third of parents are saving to help children buy their first home

Just under a third (28 per cent) of families are saving to be able to help their children with the deposit on their first home, according to figures published by Foresters Friendly Society.

The research comes after Aldermore Bank last month revealed it would take a majority of 18-24-year-olds 22 years to save up a 10 per cent deposit to buy a home in Britain.

Commenting on the figure, Foresters Friendly Society interim chief executive Erik Vynckier said: “With the cost of living continuing to rise, it’s clear financial preparation is being shared more readily among relatives, with more adults helping to ensure the children in their lives achieve major life events with minimal stress or difficulty.

“If making substantial financial contributions isn’t possible, this approach can be boosted by taking advantage of the range of saving vehicles on offer, ensuring any money saved is working its hardest.”

Furthermore, the data found that adults are also saving to make it easier for their children to learn to drive and buy their first car.

The society revealed that learning to drive costs £355 more today than it did 10 years ago and, as a result, 31 per cent of adult relatives are having to fund first cars and lessons for the children in their family.

“Saving small amounts on a regular basis can quickly become a healthy nest egg. Opening a savings plan, such as a tax-free Junior ISA, when children are young is a great way to encourage children to engage with money and allow them to see how their savings pot can grow over time with the goal of supporting their future needs,” Vynckier added.

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