How much do parents have saved for their children where you live?

Parents across the country are putting thousands of pounds into savings accounts for their children to help them later on in life – with one in 10 tucking away almost £50,000 for the next generation.

With the rising cost of higher education and property, parents are starting early with savings accounts and Junior ISAs (JISAs) for their children in order to give them a leg up. More than 1,000 children have over £100,000 in their Junior ISA. But how much of a head start they get varies by UK city.

Nearly three-quarters (74.6%) of parents are setting money aside for their kids, with an average of £18,212 saved nationwide, according to research by savings platform Flagstone.

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Most parents who are saving have amassed between £5,000 and £9,999 (21.3%) – the most commonly reported range. The second most common savings amount is £40,000 to £49,999, although only 10% of parents nationwide have saved this much.

Claire Jones, head of strategic relationships and new business at Flagstone, said: “It’s encouraging that so many parents are already saving for their children’s futures. The sooner parents start, the more time their savings have to grow. Even small amounts saved regularly can build up significantly over the years.

“But it’s not just about how much they save – it’s also about where they put it. Junior ISAs are one option, letting parents save tax-free until their child turns 18. Beyond that, finding accounts with better rates can make a meaningful difference to the amount children eventually receive.”

Average savings for children by city

When broken down by city, London parents save the most on average (£23,859), closely followed by Edinburgh (£23,669). Sheffield, Cardiff and Birmingham complete the top five.

The city which saves the least is Southampton, where parents put away an average of £9,061 for their children. This is followed by Plymouth (£12,357), while Newcastle, Norwich and Brighton complete the bottom five.

What are parents saving for?

Four in 10 parents intend for these savings to go towards education or university. That’s why over a third (34.9%) plan to hand it over when their children reach 18 and higher education begins.

This is perhaps not surprising, with students in England finishing their degrees with government loans averaging £53,000, according to figures from the Student Loans Company for 2024/25 – a jump of 10% in a year, as they increase their borrowing to meet the rising cost of living.

The second biggest savings goal for parents is to help their children onto the property ladder (38.9%). This likely reflects the increase in house prices. The latest HM Land Registry report, published on 20 August, shows prices rose by 3.7% in the 12 months to June, bringing the average UK property to £269,000, around £9,000 higher than a year ago.

More than half of parents (52.4%) keep their savings plans secret from their children. The biggest reason? Their kids are too young to understand (27.8%). Others want the money to be a surprise (13.9%) or feel their children should build their own savings first (10.4%).

Not all parents are as secretive, though. Nearly half admitted to being open with their children about their savings (47.6%).

The economic environment, like the cost-of-living crisis, could be a contributing factor in more open communication about money. A study by Legal & General in 2023 found 92% of UK parents now talk more about finances with their children.