Save for kids through crunch

By Sarah Engle, Thu 25 Sep 2008 - Published in Banking

Parents should continue to save for their children's future despite the ongoing credit crunch, an expert has suggested.

David Kuo, head of personal finance at financial website Fool.co.uk, pointed out the activity is important because the amount of time spent saving will mean children accumulate a "nice little nest egg".

He also claimed that observing their parent's behaviour through the credit crunch could be a learning experience for children and teach them how to manage their own personal finances.

Mr Kuo explained: "This is a very good learning experience for children to realise that they cannot just expect money to just continually appear even if times are hard."

The expert advised parents explain to their offspring why they have stopped giving money to them and pointed out that if adults have to cut back then so do children.

According to moneysupermarket.com, monthly savings of less than the monthly child benefit could result in a windfall worth more than Ł15,700 at around 18 years old.

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