As many as 7 million parents being pressured by their children to invest their money ethically, new research from Wealthify has found.
The digital investment service said one in five parents say their children have a good understanding of what ethical investing means, with one in six (16%) parents of children as young as 0-6 years saying their children have asked them whether something they bought was ethical.
In total, almost half (48%) of parents say their children have a good understanding of climate change and 46% say their children pressure them to live more sustainably.
Just over a fifth (21%) of parents who have saved money for their children’s future chose an ethical investment to be ‘greener’. For those yet to start saving, 46% say they would consider investing ethically for their children.
Yet despite this, a third (32%) of parents said there are not enough ethical investing options and two in five (40%) are not sure what is available.
Andy Russell, CEO, Wealthify said: “We know from our research that making choices about savings can be challenging for parents who are juggling multiple priorities. However, those who remain in cash savings accounts will continue to see their money eaten away by inflation if they choose to do nothing about it.
“Now, increasingly, there is added pressure from children who are asking them to do it ethically. We strive to help parents navigate the financial choices they make for themselves and their kids by making investing accessible and simple. And it’s awesome to see young people so engaged with financial matters and ethical issues. They are a force for good in accelerating change, so we must listen and learn from them. If COP26 has taught us anything, it’s that the next generation have a voice on ethical issues, and they are using it.”
Wealthify said over three quarters (77%) of UK adults with children under 18 have saved money for their children, including 55% who are currently saving and a further 22% who have existing savings but are not currently adding to them.
On average, parents save just over £76 a month for each child, rising to £86 per month for those who have children between 0 and 6 years old.
However, parents admitted that saving puts a strain on their finances. Two thirds (65%) of those who save for themselves say it puts a pinch on their purse and over half who save for children say it puts extra pressure on their finances.
