Regardless of their financial situation, parents wish to provide support to their children to help them stand on their feet once they enter adulthood. Approximately one-third of parents create savings. Others see potential in family real estate and other solutions to help their children.
In order to provide their children with financial stability in the future, 33.8% of respondents mentioned using a special savings account that will become available to their children once they reach the age of 18. 25.4% of respondents create savings on the savings account of their spouse. 25.5% of respondents mention having bought real estate to serve as financial support for their children in the future. 15.6% of respondents use accumulative life insurance and 11.8% – cash savings. 14.9% of respondents said they do not make any savings for their children’s future, according to results of a survey by DNB Bank.
According to results of this survey, grandparents also try to help their grandchildren financially. Although 54.4% of respondents said grandparents dost often do not use aforementioned financial support options to help their grandchildren, 30.2% of them confirmed that grandparents do provide money for the future of their grandchildren.
When asked how much money they save up for their children’s future on a monthly basis, 31.7% of respondents said they divert up to EUR 25 every month. 22.4% try to divert EUR 26 to EUR 50, 12.6% – EUR 51 – EUR 75 and 5.8% divert EUR 76 to EUR 100.
«Responses provided by parents prove – they actively try to create a financial support pillow to help their children stand on their feet later on in life. Raising children, especially in families that have more than one child, is very hard. Parents don’t always have the money to deposit on a savings account or save up in any other way. Parents nonetheless use different solutions in order to divert small amounts of money every month,» – comments DNB bank savings product category manager Normunds Rudzitis.
‘In cases when parents choose accumulative insurance to secure education for their children, often they create savings for their pension in addition to their children’s education. Unfortunately, it is often the case that there is not enough money to afford both. In such cases, parents more often choose in favour of their children’s future,’ – said Rudzitis.
According to results of the survey, parents’ have different reasons for creating savings. 39.3% of Latvian parents create savings to pay for studies. Respondents who communicate in Russian in their family never once mentioned this answer. Half of Russian-speaking respondents mentioned having no particular goal in mind for their savings, because once their children reach a certain age, they will decide for themselves how to use the family’s capital. Latvian-speaking parents mentioned this in 38.2% of cases.