A recent report by abbey savings has revealed that over 25% of parents have no savings to fall back on, in the event of an emergency.
Having a “rainy day fund “is an important part of financial planning. Just trying to save a little each month into a deposit account will make a difference and provide a level of security.
The research also raised concerns that over 25% of parents have also reduced their savings by a large amount. It is believed that parents are using savings to maintain their standard of living.
The report comes at a time when parents are not only affected by the current recession, but increases in childcare costs have also had an effect. Since the end of 2007 childcare costs have risen by 6.5%.
The report also takes into account the average costs of university education. The report estimates that the total cost of education including University fees averages over £50,000.
However, with rising unemployment and low interest rates, there are fewer incentives to save.
The Abbey report did have some positive news however. Over a third of parents plan on saving more each month and build a savings pot for a rainy day.
To find out more about financial advice and how we can help you please go to our website www.consilium-ifa.co.uk
