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Majority of parents 'worried' about children's future finances
February 20, 2012
Research suggests that many parents have failed to recognise the benefits of opening a junior ISA for their children.
Just one in three parents would consider opening a junior Isa for their child, despite the vast majority being concerned about their children's finances in the future, a study has found.
JP Morgan Asset Management commissioned a survey of 2,014 adults in January 2012, conducted by Opinium Research, which found that 94 per cent were worried that their children would struggle financially in the future.
In addition, 25 per cent of parents with children under the age of five and 17 per cent of those with 11 to 15-year-olds said they worried about the level of savings their offspring would have by the time they reached adulthood.
However, only 35 per cent said they would consider opening up a junior Isa to help their children save.
Keith Evins, head of UK marketing at JP Morgan Asset Management, said the lack of interest in junior Isas was "alarming".
"It is important parents understand there are few tax-efficient ways of saving and investing for the long term and a junior Isa is one of the simplest," he pointed out.
Earlier research by JP Morgan Asset Management revealed that, on average, parents would contribute £93 a month to their child's junior Isa.
This means that by the time they reach their 18th birthday, a child with this type of savings account could have more than £34,000 set aside for their future.
Furthermore, the research found that many grandparents would also contribute to junior Isas, helping to boost their grandchildren's savings pots.
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