Parents fear for children's financial future

Monday 20th February 2012

A staggering number of parents (94%) are worried about their children's financial future according to a study by J.P. Morgan Asset Management.

Despite this, the research has revealed that only a third of parents (35%) would consider opening a Junior ISA for their child as a way to start saving for their future.

The study revealed parents' biggest concern for their child's future is that they are able to enjoy life without struggling financially.

More than half (57%) of respondents cited this as a worry. Their second and third largest concerns are unemployment and the rising cost of living, 56% and 53% respectively.

Nearly a fifth of parents (22%) worry the level of savings their children will have accumulated when they reach adulthood will not be enough, particularly among those with children under five, 25%, in comparison to 17% of parents with children between 11 - 15 years old.

Keith Evins, Head of UK Marketing at J.P. Morgan Asset Management said: "With recent figures showing youth unemployment in the UK currently standing at 22%, it is unsurprising such a high proportion of parents are concerned about their children's future, particularly from a financial perspective.

"However, it is alarming that in spite of this only 35% of parents are considering opening a Junior ISA. 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.

"Previous research we conducted shows that the likely average contribution into a Junior ISA would be £1117 a year (£93 per month), which could mean a savings pot worth over £34,000 by the time the child turns 18."

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Mike Jones