21 January 2019
Junior ISA: Adults wish they were given money-saving advice
- UK parents admit to wishing they had a better understanding of finances at school
- 37% wished they knew how to save money for short and long-term goals
- 28% wished they understood the value of money by handling cash early on
- 27% of parents under 30 wished they had learnt how to avoid using payday lenders
A huge 37% of parents wish that they were given money-saving advice when they were at school, according to research here at Foresters Friendly Society. These adults needed more important money lessons on how to save for both short-term and long-term goals.
Despite finance management being an essential life skill, many adults did not learn about money growing up. Financial education was only introduced to the UK school curriculum in September 2014, meaning many adults left school without learning those important money lessons.
The impact of a lack of money-saving advice
With a lack of understanding of basic finances comes potentially devastating impacts on long-term financial wellbeing.
For example, younger parents see a significant detrimental impact of a lack of financial education. A lack of transferable skills is a contributory factor in a rising debt problem, ultimately contributing to an ever-growing reliance on payday loans to keep up with regular financial commitments.
A total of 27% of parents sampled, aged between 25 and 29, stated they wished they had understood the importance of avoiding payday lenders from an earlier age – showcasing the need for sound money-saving advice during formative years.
How key is learning those important money lessons?
More recent government measures support a basic financial education at school, but there needs to be a thorough assessment of how effective the curriculum will be in real-life situations.
If they could go back, 28% of parents quizzed wish they had the opportunity to learn about money and the value of money by handling cash early on during their development.
A total of 25% said that they would have found education on financial markets and the wider economy useful in adulthood.
Junior ISAs explained: The importance of the ability to save
The ability to save is vital for basic money management in adult life, and it’s something that is in high demand from parents that have missed out on money-saving advice and a thorough financial education.
Instilling healthy saving habits and helping the next generation to learn about money can improve the likelihood of youngsters making positive financial decisions in the future.
The responsibility of these important money lessons does not fall solely on teachers though, and parents can help with the heavy lifting at home using mobile banking apps and digital games.
A positive lesson parents can provide is by explaining Junior ISAs to their young ones too. Encouraging youngsters to save part of their earned pocket money into a savings plan like a Junior ISA can help provide that sound money-saving advice of putting money away frequently for the future.
Junior ISAs are also a tax-free way of generating a nest egg to help with future expenses like university fees, or to put towards a first car or a house deposit – so saving has the potential to do more than just educate.
Sound like a Junior ISA could be an option for your children? Request a pack by email to learn more about the Foresters JISA.
The content of this article is for information purposes only and does not constitute financial advice. We do not offer financial advice. If you’re unsure as to the suitability of a product you should seek advice from a Financial Adviser. You may have to pay for this advice.
Tax rules may change and depend on individual circumstances. Contributions paid into a Foresters Friendly Junior ISA are invested in a fund which includes stocks and shares, the value of the plan may fall as well as rise and your child may get back less than you have paid in.