Sep 11 2008
Parents who can save £50 per month during the 14 years their children are in school could set aside more than £15,700 by the time their child is ready for university, moneysupermarket.com has suggested.
The price comparison website stated this week that a £50 deposit, made monthly, could have the potential to earn more than £7,300 in interest - while mums and dads who set aside £100 per month could increase this figure to more than £13,850.
"The value in starting early is down to the almost magical effect of compound interest," said Kevin Mountford, head of savings at moneysupermarket.com.
He added: "This means parents can nearly double their child's investments over 14 years if they are diligent in their monthly savings."
Mr Mountford further opined that children should be taught the importance of regular saving from a young age to get a "head start" on their future.
Rob Fisher, head of UK retail marketing at Fidelity International, echoed this statement earlier this week, asserting that parents who save small amounts at regular intervals have adopted a sensible approach to setting money aside for their children.
