Actually, most parents do invest their money instead of save it in banks.
But, they choose the safe investment that the gain can't hedge against school and medical inflation, usually a country has 4% inflation rate, but the school and medical inflation rate are around 10%-15%.
These parents choose to invest their money in time deposit (5% APY), ETFs (7% APY), gold (8%) or stock (depend on the stock). The thing is, most stock didn't bring a good amount return for long term, moreover these parents mostly choose investment that can't hedge against inflation, that's why the poor stay poor.
That's what I was thinking, if the parents have a minimum of financial knowledge they will invest the money in one way or another. In countries like the US there are types of accounts for that, like 529 plans. Although I prefer to have the money myself, increase my net worth and if necessary I will be able to help them. But I think it is more important to teach them how to fish than to give them the fish. Spoiling them may end up with them spending their money on drugs and the like.