Doing it for the kids: JISAs lead as ISAs take a seat back seat
Investor Index shows a greater focus on saving for future generations, as the number of new JISA sales opened increased by 101% since 2019
Mums lead the way in investing for children with more opening JISAs than Dads
Scottish Friendly’s latest Investor Index has shown that planning for future generations has been the greater priority for parents and guardians.
The leading financial mutual’s study of its members’ investment trends, revealed that between October to December last year, the number of JISAs opened had increased by 101% since 2019 when the index was first launched. The shift of members prioritising saving for their children over themselves was backed up by a drop in ISA investments in the same period.
Leading the way with new JISA savings was mothers. Since the start of 2019, the number of new JISAs opened was up 115%, compared to fathers, which was up 87%.
The boost in JISA investments was reflected in younger parents, aged 18-34, with the number of JISAs being opened increasing 35 times over since 2019. The amount of money they put into JISAs after the summer last year was also up, by 107%, despite ongoing living cost pressures and the impending Christmas period.
Location did not impact members opening JISAs, with every region across the UK seeing an increase in new sales since the start of 2019. Scotland topped this with an increase of 191%, closely followed by East Midlands (147%).
Scottish Friendly’s savings specialist, Kevin Brown, commented on the data:
While the cost of living increases we have seen in recent times may be slowing, the impact on incomes will continue to be felt for a while to come and UK households will face tough decisions on how to cut back on non-essentials..
Our data shows that for those investing for children the priority is clear. We’re seeing them opt to prioritise their children over themselves, by putting away what they can, when they can. Clearly saving and investing for kids remains a top priority for families up and down the UK and more should be done to support and encourage this where appropriate.Recently the government has hinted ISA reforms may be coming and we believe that changing rules to allow other family members, such as grandparents to open JISAs too would provide a much needed boost to children's savings. Removing those restrictions can only help to put children on a stronger financial footing as they head into adulthood and so should be strongly considered in any planned reforms.
Contacts:
Chris Tuite, Director and Head of Consumer Finance at MRM
07471 350 810
Editors notes:
Remember that the value of investments can go down as well as up and you could get back less than you paid in. Past performance is no guide to future results. Tax treatment depends on individual circumstances which can change in the future.
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
In recent years Scottish Friendly has significantly restructured its business. The Group has flourished through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.
Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.