An uncertain financial future is creating anxiety amongst some parents that their children won’t be able to secure employment or face large debts, with many planning to help them with financial outlays, according to a research conducted by Lloyds Bank Private Banking.
Nearly 62% of parents questioned by Lloyds Private Banking think their children will struggle in the job market, while 34% of mums and dads are concerned about the level of debt their kids may have.
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In an effort to help out, the vast majority (80%) have invested some money for their children before they reach the age of 10.
Nearly half of parents surveyed said they have made investments on their children’s behalf, with 42% in the form of trust funds and 24% in stocks and shares.
While property is viewed as the best investment among those surveyed for one’s children – doubling the popularity of stocks and shares in terms of opinion (25% vs 51%) – when it comes to actual investments parents have made on behalf of their children it is well down the list at 15%. This is compared to trust funds (42%), stocks and shares (24%) and bonds (22%).
Sarah Deaves, investment advice & private clients director at Lloyds Bank, commented: "Our research shows that while the majority of parents are quite clear where they think the best long term investment is for their children’s future, nearly 20% simply don’t know. This suggests that good financial advice is as important as ever, especially with such long term and important investment decisions."
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By GlobalData"By setting aside a little amount at a time and taking the time to create a financial plan, parents may be able to help their children and give themselves some piece of mind," Sarah Deaves concluded.
