Many of us worry about the state of the economy these days. An ever increasing amount of households across the UK are finding it harder to make ends meet each month, as the cost of living has soared in recent years while wages have largely stood still. But if you are worried for your child’s financial wellbeing in the future, you are not alone.
In fact most parents do, but sadly, many do nothing to provide their children with savings and a stable financial future.
Despite a recent study done by J.P. Morgan Asset Management which found that 94% of parents report being concerned about their child’s financial future, only a third of parents are considering opening up a Junior ISA savings account for their children. Having some savings at the start of your adult life can be very important, allowing the child an easier transition to the adult world than otherwise.
Youth unemployment in the UK currently stands at 22%, according to Keith Evins, the Head of UK Marketing at J.P. Morgan Asset Management. Because of this, it is even more important for children to have some savings waiting for them as they become adults, either for school and being able to afford high tuition fees, or getting their first car which can open up new job opportunities, or even relocating across the country in order to pursue a job.
When it is hard to make ends meet, it is understandable that savings take a back seat. However, with even small and regular contributions into an account like the Junior ISA, you can still build up a respectable nest egg for your child, which can truly be of great benefit to them once they reach 18 years of age and can start claiming from these funds.
However, while parents are worried for their children’s financial future, teenagers across the country seem to be more optimistic about their prospects. Research carried out by NatWest bank in May found that while the parents who participated feared that their children would be worse off than they are, and had hopes for them of earning around the average wage of 35 year olds at 35 years of age, the children themselves expected to own their own house in their 20s and to earn £51,000 at 35.
The most optimistic teenagers were found in the London area, where the average expected salary for the teens came out as £63,227 per year, which is a good deal above the average salary for a 35 year old, just under £29,000. The most modest teenagers could be found in the East Midlands, where the expected salary was reported as £33,468, just about £4,000 over the national average.