Scores of younger parents in the UK regret having children due to the cost of living crisis, and this could result in lower longer-term savings for young people, an asset manager has warned.
According to research commissioned by Janus Henderson Investment Trusts, 41% of 1,219 younger parents regret having kids due to rising childcare expenses amid current levels of inflation.
Due to the financial burden, some parents have reduced (20%) or halted (17%) savings for their kids’ future. However, three-quarters of parents said they were still saving regularly.
Dan Howe, head of investment trusts at Janus Henderson, stressed the significance of a long-term “considered financial plan” for children during difficult times.
“Saving for your family’s future can seem particularly daunting at times like these, but there are few things that have a greater impact than developing a long-term saving plan as early as possible,” he said.
The research revealed that one in four parents aged 18-34 wished to wait until they earned more money or had more savings before starting a family.
Amid the cost of living crisis, a fifth of parents stated that they had chosen to have fewer children than originally planned, while 15% said they were glad to become a parent but wished they had decided to have fewer children.
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