Savings for children: inequalities begin at birth
A new study by INED shows that savings for children are an early reflection of social and familial inequalities
Author: Marion Leturcq (INED)
When they are born, certain children already have a savings account or product in their name. Others have none upon reaching adulthood. In the latest issue of INED’s monthly bulletin Population & Societies, scholar Marion Leturcq uses data from the Patrimoine studies* to show that saving for children is a popular, though highly unequal, family practice. Disparities in wealth among children reflect both household differences in wealth and differences in family strategies of wealth transmission.
A common but unequal practice
More than one-third of childen have a savings account in their name at age 1. This share rises to three-quarters when children reach age 18. On average, children have €1,300 in their name, but half of children have nothing or almost nothing, and 10% have more than €3,150. The amounts increase greatly with age: children aged 0–1 have €350 on average, and those aged 16–17 have €2,300.
The decisive weight of parents’ wealth
Savings for children reflect the wealth of their households: 40% of children from the poorest half of households have no savings product, compared with only 13% of those from the richest 10% of households. The amounts saved differ considerably: at age 16–17, half of children from the wealthiest households have more than €1,800, and one in ten have more than €19,000. In total, 10% of children account for 74% of all savings held for children.
Family situation, siblings, and grandparents are also determining factors
At similar levels of wealth and other household characteristics, children living with both parents have an average of €2,315, compared with €1,633 in blended families. The number of siblings also plays a role: where an only child has an average of €3,100, a child with two siblings has an average of less than €2,000. Finally, having living grandparents or previous inheritances significantly increases the amount of savings: a child with four living grandparents has around €3,300 in savings, compared with €1,900 when the grandparents are no longer alive.
Early and lasting inequalities
These results show that wealth inequalities form during childhood. By the time they reach adulthood, some young people have financial capital that allows them to start their adult lives with greater peace of mind, while others do not have the same individual capital. In several countries, public savings products for children, known as child development accounts, have been introduced in order to guarantee minimum resources for everyone upon reaching adulthood. In France, no such scheme has been implemented yet.
KEY FIGURES
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- To find out more, see the complete analysis in issue no. 638 of Population & Societies, attached.
* Patrimoine surveys The analysis is based on the Patrimoine (2003–2004 and 2009–2010) and Histoire de vie et patrimoine (2014–2015, 2017–2018, and 2020–2021) surveys on household wealth and life, conducted by INSEE. For each survey, the 10,000–15,000 households questioned were representative of the French population, and collected information on their assets and liabilities, including any financial products opened in children’s names, as well as about the sociodemographic characteristics of household members. To measure savings for children, savings accounts, home savings schemes, and financial products (life insurance, retirement savings, shares, etc.) were taken into account. Current accounts were excluded. The five surveys were regrouped into one cumulative sample of 28,656 children. |
Published on: 26/11/2025