It has been revealed that families with a lower income save a higher proportion of their salary into a child trust fund than parents who are on a higher income, according to research conducted by Engage Mutual.
Their research shows that higher earners spend 41per cent more on holidays and 39 per cent more on socialising and going out. Higher earners set aside 0.6per cent of their monthly salary, while lower earnings families are leading by example and setting aside 1.1per cent of their salary to put into child trust funds.
Our view
I suggest these figures are somewhat distorted to compare a high earner saving with £1000 a month with a lower earner saving £100 per month but a higher proportion of income is like comparing chalk and cheese. The reality is that we all need to save not just for our children but also for ourselves.
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