The Bank of Mum and Dad? Nearly Three-Quarters of UK Parents Are Saving for Their Children’s Future

UK savers are expected to transfer £7tn between generations by 2050 as part of the ‘Great Wealth Transfer’. The concept of ‘giving while living’ is allowing baby boomers to pass their wealth onto generation X and millennials – helping to reduce the amount of tax they owe.

The older generation has been able to grow their savings by living longer and building wealth through their properties, investments, and pensions. But will the next generation be able to do the same?

High-interest savings platform Flagstone conducted a new survey to discover exactly how much this generation of parents is saving for their children, with some interesting results.

Saving for their children’s future is a clear priority for UK parents. Nearly three-quarters (74.6%) are setting money aside for them – an average of £18,212 nationwide.

Most parents who are saving set aside between £5,000 to £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.

For 40.2% of UK parents, these savings will 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 university fees in England and Wales increasing by £285 per year to raise them in line with inflation.

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, which have risen 1.4% since last year. The average house price in the UK is £268,400 (as of May 2025).

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. Studies show that 92% of UK parents now talk more about finances with their children.

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.

Cities with the highest average savings for their children

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.

Cities with the lowest average savings for their children

Claire Jones, Head of Strategic Relationships and New Business at Flagstone, commented on the study: ‘It’s encouraging that so many parents are already saving for their children’s futures. But it’s not just about how much they save – it’s also about where they put it.

‘Junior ISAs (JISAs) 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. That’s where platforms like Flagstone can help, by giving parents access to a wide range of competitive savings accounts – all in one place.

‘The sooner parents start, the more time their savings have to grow. Even small amounts saved regularly can build up significantly over the years.’

You can view the full study here.