SBERBANK OF RUSSIA Fifty-nine per cent of residents in big and midsize cities believe you should save up to support your children nowadays. A survey Sberbank life insurance held ahead of the International Day for Protection of Children in 37 cities claims that the average amount that parents find fitting to secure their kids' future is RUB 7.6 mn in Russia.
The most popular goal of such savings is still tuition money. In May 2021, as many as 66% of survey participants who are ready to save up for children named this goal, which is down from last year's 70%. The share of parents saving up has grown for all other popular goals: 57% of respondents save to buy an apartment for a child (53%), 42% of parents save up for treatment of children (12%), 24% set money aside 'so that our children could have money when they grow up' (14%), 20% are building up an inheritance (8%).
Parents of all ages think saving up for children is the right thing to do: 67% of respondents aged 18 to 30, 63% of respondents in the 30-50 age group, and 54% of survey participants aged between 50 and 60. There are more women (62%) than men (56%) agreeing you should save up for your children's future.
The size of savings that would be enough for a child's decent future varies across cities. The metric is the highest in Moscow and St. Petersburg, standing at RUB 13.2 mn and RUB 11.1 mn, respectively. In other million cities, the metric varies from RUB 5.9 mn in Rostov-on-Don to RUB 4.6 mn in Ufa and Omsk. In cities with fewer inhabitants, children would require less money: according to parents living in Barnaul and Astrakhan, it's RUB 4.1 mn, while in Makhachkala it's RUB 3.6 mn.
Most of the people believing they should save money to support their children live in Moscow (69% of the respondents); 66% of the respondents are of the same opinion in Voronezh, Lipetsk, Nabarezhnye Chelny; 63% agree with them in Novosibirsk and Ryazan; in Tyumen the metric stands at 62%.
You can build savings for your children through a variety of instruments: a savings account, a brokerage or personal investment account, or a life insurance endowment policy. To choose the tool that suits you, you should answer several questions. Is it vital that you save up using an account registered to the child? Are parents ready to invest in riskier products that could potentially generate higher yield or will they choose smaller, yet predictable income? How will your funds be protected while you build them up?
Life insurance endowment policies are catching on among our customers. This kind of policies are great for savings in the long run as you can choose any term when signing a contract, which is different with savings accounts that you need to reopen as they mature and your wealth grows. Life insurance endowment policies guarantee your child will get the amount you had planned by the time you want them to. Even should parents encounter some unwanted events, the insurer will keep building savings. Furthermore, such policies discipline you to set money aside regularly and minimize the risks of spending money on something different ahead of maturity.
Natalya Alymova
Senior Vice President and Head of Wealth Management, Sberbank
According to the survey results, not only do parents strive to make sure their children have savings for the future, but they also support their children even after they grow up (45% of parents). Interestingly, this metric added 5 pp y-o-y. Forty-six per cent of the respondents said they do receive financial assistance from their parents or elder relatives (44% a year ago). The metric is the highest in Krasnodar (96%), Yaroslavl (72%), and Voronezh (71%).
The opinion survey was conducted in May 2021 in 37 cities of Russia with 500,000+ people each, using a representative sample reflecting the sociodemographic profile of a city.
Appendix 1.
Share of Russian cities' residents who claim building up savings to support children is the right thing to do
Moscow | 69% |
Lipetsk | 66% |
Voronezh | 66% |
Naberezhnye Chelny | 66% |
Ryazan | 63% |
Novosibirsk | 63% |
Tyumen | 62% |
St. Petersburg | 61% |
Krasnodar | 61% |
Rostov-on-Don | 61% |
Tomsk | 61% |
Chelyabinsk | 60% |
Nizhny Novgorod | 60% |
Krasnoyarsk | 60% |
Tolyatti | 60% |
Yaroslavl | 59% |
Ufa | 59% |
Ulyanovsk | 59% |
Irkutsk | 59% |
Orenburg | 59% |
Samara | 59% |
Izhevsk | 58% |
Penza | 58% |
Perm | 58% |
Kazan | 58% |
Kirov | 58% |
Ekaterinburg | 57% |
Omsk | 57% |
Barnaul | 57% |
Kemerovo | 57% |
Novokuznetsk | 56% |
Saratov | 56% |
Astrakhan | 55% |
Khabarovsk | 55% |
Vladivostok | 53% |
Makhachkala | 52% |
Volgograd | 49% |
Appendix2.
Average estimate of savings enough to support children among urban residents, RUB mn
Moscow | 13.2 |
St. Petersburg | 11.1 |
Krasnodar | 5.9 |
Rostov-on-Don | 5.9 |
Ryazan | 5.8 |
Yaroslavl | 5.8 |
Ekaterinburg | 5.6 |
Samara | 5.6 |
Voronezh | 5.5 |
Nizhny Novgorod | 5.4 |
Tyumen | 5.3 |
Kazan | 5.2 |
Volgograd | 5.1 |
Tolyatti | 5.1 |
Chelyabinsk | 5.1 |
Krasnoyarsk | 5 |
Lipetsk | 4.9 |
Novosibirsk | 4.9 |
Penza | 4.9 |
Saratov | 4.8 |
Vladivostok | 4.7 |
Perm | 4.7 |
Ulyanovsk | 4.7 |
Izhevsk | 4.6 |
Naberezhnye Chelny | 4.6 |
Omsk | 4.6 |
Ufa | 4.6 |
Kirov | 4.5 |
Khabarovsk | 4.5 |
Irkutsk | 4.4 |
Kemerovo | 4.3 |
Orenburg | 4.3 |
Novokuznetsk | 4.2 |
Tomsk | 4.2 |
Astrakhan | 4.1 |
Barnaul | 4.1 |
Makhachkala | 3.6 |
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Sberbank of Russia published this content on 01 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2021 09:21:03 UTC.
