Parents and grandparents have tried to provide a financial boost for their offspring for many generations – it’s part of our DNA. Today, the need has never been greater: our children are facing a perfect storm of financial adversity.
In contrast, those who are grandparents today have enjoyed a generally favourable environment for accumulating wealth. Here are some of the issues:
High cost of further education
Following the recent rise in university tuition fees, UK students now graduate with the highest levels of debt in the English-speaking world.
Property prices have never been so out of reach
In London, the house price to earnings ratio is now over 9, compared with less than 3 in 1991. First-time buyers typically get onto the property ladder at 32 years of age, and nearly half of which have a mortgage of 30 years or more. Were it a corporation, the ‘Bank of Mum and Dad’ would now be the 10th biggest UK mortgage lender.
Much lower employer contributions to pensions
Compared to the generous final salary schemes of the past, employers contribute less than half as much into pensions today.
In this guide we explain:
- Why it makes sense to start investing early for a child.
- How to choose the right account between Junior Stocks & Shares ISA, Bare Trusts and pensions.
- How to make the most of you and your child’s personal allowances.
