Mutual urges helping hands for Junior ISAs
Nearly half of Millennials would be willing to open a Junior ISA (JISA) to help give someone else’s child a financial leg up, according to research conducted by market researchers 3Gem on behalf of mutual investment firm Scottish Friendly.
It found that in the UK Millennials’ generosity outstrips that of all other generations with nearly half (49 per cent) saying they would be likely or very likely to take out a JISA on behalf of a child that wasn’t their own if the rules allowed it.
The figure for Gen Z was 36 per cent, Gen X 33 per cent, and Baby Boomers 26 per cent.
Meanwhile, the same research shows a continued rise in support among the UK public for reforming JISA rules to remove the barrier which currently stops extended family and friends from investing.
The findings – from research conducted in July and August this year among 2,428 UK adults – form part of a growing body of evidence being compiled by Scottish Friendly in support of the modern mutual’s campaign to relax the JISA rules.
Scottish Friendly wants to see the restriction on who can open a JISA on a child’s behalf lifted – as it currently stands, only the child’s parent or legal guardian is allowed to open an account.
Scottish Friendly believes the change it is proposing could help many more children to enter adulthood on a firmer financial footing than they might do otherwise. Their research also shows clear appetite among parents for the rule change, as well as a growing willingness among UK adults to step in to help out.
Scottish Friendly is currently lobbying the UK Government to get behind its campaign to change the rules to allow extended family – in particular grandparents – to open a JISA on behalf of a child, should the parents or legal guardians not have the time or financial means to do so themselves.
The research found that across all Scottish adults, 36 per cent said they would open a JISA for someone else’s child if the rules allowed it, and 32 per cent of Scottish parents would like grandparents to be able to open a JISA on their grandchildren’s behalf.
Kevin Brown, Scottish Friendly savings expert, says: “Our recent research further highlights the real need that sits behind our campaign to get the JISA rules changed to allow more of today’s adults to step up to help out the next generation.
“There is clear appetite among parents to let others help out and a significant – and growing – proportion of UK adults willing to do it. The one small change to the JISA rules we are campaigning for has the potential to make a real difference to future generations.”
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