# Parents Lose £4,000 by Delaying Child Savings Until Age Five Early savings accounts could boost children's future funds by thousands. - **Source:** [Daily Express :: Finance Feed](https://www.express.co.uk) - **Published:** 2026-09-24 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/1b83c5d4-6802-4739-8514-f11939813e7f ## Significant savings gap Parents who delay opening a savings account until their child is five miss out on approximately £3,794 in potential savings. This calculation is based on the average monthly contribution of £63.24 that parents typically make once they start saving. The amount could be even higher when considering potential interest earnings over time. The research highlights how early financial planning can significantly impact a child's future financial resources. ## Common savings delays The study reveals that 66% of parents don't establish savings accounts before their child's first birthday. Among these, 26% prioritize other financial obligations during the baby's first year, while another 26% prefer to wait until their child is older. Surprisingly, 21% intend to open an account but never follow through. These delays collectively contribute to substantial missed savings opportunities during critical early years. ## Parental financial concerns Over half (53%) of parents believe their children will face greater financial challenges than they experienced. Their top concerns include purchasing a first home (43%), university costs (38%), and driving expenses (26%). These anticipated costs underscore the importance of early savings, as 39% of parents now recognize the benefits of starting sooner, and 33% worry about future financial pressures their children may encounter. ## Skipton's savings initiative Skipton Building Society is actively promoting early savings through incentives like £25 for eligible parents who open a Junior Cash ISA for children aged three and under. They've reintroduced the Skipton Castle Money Box to encourage saving habits from childhood. The institution partnered with The Mum Club to educate new parents about financial planning through expert-led brunch events, combining practical advice with community support. ## Behavioral insights The research found that 55% of parents regret not starting savings earlier for their children. Many supplement regular contributions with gifts from family (32%) or birthday money (31%). Notably, 75% consider monetary gifts more valuable than toys, with 48% believing cash gifts provide better future support. This shift in gifting preferences reflects growing awareness of long-term financial planning benefits for children. ## Psychological barriers Alex Sitaras of Skipton notes that new parents often prioritize immediate needs over long-term savings due to overwhelming responsibilities. The first year's focus on adjusting to parenthood frequently delays financial planning. However, he emphasizes that even small, regular contributions can accumulate significantly over time, potentially easing future expenses like education, first car purchases, or home deposits. ## Community impact The Mum Club's Lauren Webber highlights how peer discussions among parents often reveal the importance of early financial planning. Many parents initially focus on immediate needs, only realizing later the value of early savings conversations. The partnership with Skipton aims to create supportive communities where parents can share experiences and build confidence in preparing for their children's financial futures. ## Long-term advantages Starting savings from birth instead of age five could yield thousands more pounds by adulthood. The research demonstrates how compounding small contributions creates meaningful opportunities later in life. Early savings not only build financial resources but also teach children valuable money management skills. This approach helps establish a stronger financial foundation for major life milestones. ## Sources covering this story - https://www.express.co.uk/finance/personalfinance/2251374/parents-miss-out-4000-children — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._