Millions of UK adults are quietly building a vast family savings economy that is helping fund the next generation, according to new research from Saffron Building Society.
The research suggests that saving for children is increasingly becoming a shared family effort rather than solely a parental responsibility, with grandparents, aunts, uncles and wider family members playing a growing role in helping children build financial foundations for later life.
Saffron estimates UK adults now contribute around £19bn annually towards children’s savings, with approximately 35 million adults (65%) regularly putting money aside for children in their family.
On average, UK adults contribute £542 each year, creating what Saffron says is a significant but often overlooked intergenerational savings trend developing quietly across the country.
The analysis also suggest expectations for future financial support remain high. Families believe children will receive an average savings pot of £10,148 by age 18, reflecting growing recognition that younger generations may increasingly require financial support for major life milestones.
Saffron’s own internal data also suggests grandparents are playing an increasingly important role in long-term saving, with 59% of children’s savings accounts opened through Saffron now opened by grandparents rather than parents.
The findings come as Saffron Building Society relaunches its children’s savings proposition under its refreshed ‘Ladybird’ brand, including the new Ladybird Legacy Account, rated ‘Excellent’ by Moneyfacts, which is designed to help families build long-term savings for children more flexibly over time. The Society says the changes reflect the growing importance of children’s savings within wider family financial planning, with research showing millions of adults are actively contributing towards children’s futures and expecting savings to play an increasingly important role in supporting younger generations through major life milestones.
Alongside the launch of the Ladybird Legacy Account, Saffron has also refreshed its wider children’s savings range, streamlined application journeys and enhanced support for families opening children’s accounts.
The changes are intended to support the way families increasingly save today: collectively, over the long term and often across multiple generations.
“Saving for children has quietly become much more than a parent setting aside a little money each month. Increasingly, we’re seeing whole families thinking about how they can help create opportunities and financial security for younger generations.
Nathan Huxham, Marketing Project Manager at Saffron Building Society
“That’s one of the reasons we’ve refreshed our children’s savings proposition. The research shows families remain deeply committed to supporting future generations, and we want to make it as easy as possible for parents, grandparents and wider family members to build those savings over time.
“Many families recognise that milestones like education, first homes and broader financial stability can feel more challenging for younger people today, and we’re seeing grandparents and wider family networks becoming more involved as a result.”
Further findings from the research show:
- 65% of adults save regularly for children in their family
- 42% also make occasional lump sum contributions
- Only 4% say they do not contribute at all
- Around one in four contribute more than £500 annually
- Saving for children is increasingly viewed as a long-term investment in future opportunities and security
The findings form part of Saffron Building Society’s new research exploring how families across the UK are saving for, supporting and shaping children’s futures.
