Second post of the day and I have to admit that not much work has gone into this one either.
Reason being, if you type ‘junior’ into Google at the moment the top suggestion that drops down is ‘junior isa’.
It’s a bit of a hot topic and there’s plenty of buzz.
What started me wanting to write something was an email I received from the IFS.
I’m working through some exams with them (passed one a week ago today!) so I get regular news and updates and they have released the following:
London, U.K., 28 November, 2010: Financial education charity, the ifs School of Finance, has welcomed the Government’s announcement that a new tax free savings account, dubbed ‘Junior ISAs’, is planned as a successor to the Child Trust Fund.
Rod McKee, Head of Financial Capability at the ifs School of Finance, said:
“The creation of Junior ISAs is a great initiative to help encourage parents and grandparents to save for their children’s future. It is particularly pertinent following the findings of the recent Browne Review which indicate young people will need to play a bigger part in funding their own education.”
“Junior ISAs provide an excellent opportunity to save for the increasing financial burdens associated with higher education but this alone is not enough to ensure wide uptake. We need to start with education on why long term saving like this matters, so both parents and young people can be better prepared. At the moment there is no mandatory requirement for financial education in secondary schools, at the very age when it is most beneficial. We need to give financial education a higher status both in terms of curriculum status and formal evaluation via exams to effect change in money attitudes.”
The ifs School of Finance was the first provider of GCSE, AS and A level equivalent qualifications in personal finance and is the only provider of A level equivalent qualifications in the area.
They make a good point. Financial education in school is a great idea! It might make children and teenagers a bit more grateful for everything they get and why the answer is sometimes ‘no’.
It will also make them better prepared for the real world and their expectations of work and in a service based economy it can only help to improve the opportunity for employment.
Hopefully the release and subsequent availability of the Junior ISA might go some way to raising awareness and at the same time it’s a way of the Government spending £500M less of taxpayers money per year.
For more, here’s a pretty comprehensive description: