How much are UK parents really saving for their kids? New study reveals the eye-opening averages
75% of UK parents are saving for their children, with education and housing the top priorities
It turns out the ‘Bank of Mum and Dad’ isn’t just funding first homes – it’s also quietly stashing away savings for the future. A new study by savings platform Flagstone has revealed that nearly three-quarters (74.6%) of UK parents are putting money aside for their children – and the average savings pot now tops £18,000.
But how much parents save – and what they save for – can vary wildly depending on where they live, how old their children are, and what financial pressures they’re facing.
Here’s what the study uncovered – and what it might mean for you.
Parents are saving an average of £18k – but some save far more
The national average of £18,212 might sound impressive, but that figure hides big differences depending on where families live. London parents top the savings charts, setting aside a whopping average of £23,859 for their children, closely followed by Edinburgh at £23,669.
At the other end of the scale, parents in Southampton are saving the least, with an average of £9,061, while families in Plymouth, Newcastle, Norwich, and Brighton also came in under the £15k mark.
The most common savings range? Around 1 in 5 parents (21.3%) are saving between £5,000 and £9,999, while just 10% have managed to save between £40,000 and £49,999.
Education is the top savings priority
So what’s all this money for? Unsurprisingly, education is the biggest motivator for parents – with 40.2% of savers saying they’re putting money aside to help with university or school fees.
With university tuition fees expected to pass £10,000 a year by 2029, and the average student now graduating with more than £45,000 in debt, it’s no wonder parents are planning ahead.
More than a third (34.9%) of parents say they plan to hand over the money when their child turns 18 and heads off to higher education.
Buying a home is the second most common savings goal, with 38.9% of parents saying they’re trying to help their children onto the property ladder – a goal that feels increasingly out of reach for many young adults. According to the latest figures, the average UK house price now stands at £268,400 (as of May 2025).
More than half of parents are keeping their savings plans secret
Interestingly, 52.4% of parents haven’t told their children they’re saving money for them. Why the secrecy?
The most common reason, cited by 27.8% of parents, is that their children are simply too young to understand. Others want it to be a surprise (13.9%) or think their kids should learn to save their own money first (10.4%).
Still, almost half of parents (47.6%) say they’re open with their children about the money they’re saving. In fact, broader conversations about finances seem to be becoming more common – 92% of UK parents say they’re now more open about money matters with their kids, possibly driven by cost-of-living pressures and rising household bills.
It’s not just how much – it’s where you save it
Claire Jones, Head of Strategic Relationships and New Business at Flagstone, says it’s not just about putting money aside – it’s about making those savings work harder: “It’s encouraging that so many parents are already saving for their children’s futures. But it’s not just about how much they save – it’s also about where they put it," she says.
"Junior ISAs (JISAs) are one option, letting parents save tax-free until their child turns 18. Beyond that, finding accounts with better rates can make a meaningful difference to the amount children eventually receive," she adds. "The sooner parents start, the more time their savings have to grow. Even small amounts saved regularly can build up significantly over the years.”
City-by-city: Where are parents saving the most?
Here’s a snapshot of the top and bottom saving cities in the UK:
Top 5 highest savers
London – £23,859
Edinburgh – £23,669
Sheffield – £18,758
Cardiff – £18,417
Birmingham – £17,964
Bottom 5 lowest savers
Southampton – £9,061
Plymouth – £12,357
Newcastle – £13,490
Norwich – £13,529
Brighton – £14,057
Should you be saving and if so, how much?
While not every family can afford to set aside thousands, the research suggests even small, consistent contributions can have a real impact. Whether you’re aiming to help with uni, a first home or just give your child a financial head start, having a clear savings plan – and exploring options like high-interest savings accounts or JISAs – could be worth considering.
And if you’ve been quietly saving behind the scenes? You’re definitely not alone.