Parents keeping quiet on JISAs
5 November 2018
Four fifths of parents and relatives who invest in junior ISAs are holding off until the child reaches adulthood to tell them they have money invested, according to a new survey by Willis Owen.
Of those investors waiting until the child is 18, nearly two in five (39%) said it is because they would like it to be a surprise, while more than a third (34%) are worried they will not be mature enough to be informed earlier. Almost a quarter (23%) said they do not want their child to feel spoilt by becoming aware of their savings before their eighteenth birthday.
On the subject of what the money should be used for, nearly half (47%) of all those saving into JISAs hope the money will be used for university or higher education, while 43% would like the funds to contribute towards a deposit for a property. A further 42% would like the money to remain invested, while 34% would like it to be used to pay for a car and 22% hope it will cover the cost of travelling the world.
Adrian Lowcock, head of personal investing, Willis Owen, said the findings uncover the “worrying” issue that most people are leaving it too late to have conversations about personal finances with the younger generation.
He commented: “Learning about money and becoming financially aware is a long process, but it should start as early as possible. Most of our financial behaviours and disciplines come from our families so if you want to instil good behaviour you will need to practice what you preach.”
Lowcock says parents should start by giving children small amounts of change when shopping to buy goods so they become involved in the whole process and understand the value attached to different items and services.
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