News Categories

• Banking
• Breakdown Cover
• Car Insurance
• Credit Cards
• Home Insurance
• Insurance
• Life Insurance
• Loans
• Money
• Mortgages
• Pensions
• Pet Insurance
• Travel Insurance

News Archive

• May 2012
• April 2012
• March 2012
• February 2012
• January 2012
• December 2011
• November 2011
• October 2011
• September 2011
• August 2011
• July 2011
• June 2011

Newsletter

Junior Isas could help teach the importance of saving

By Jonathan Dawes, Thu 31 Mar 2011 - Published in Money

Junior Individual Savings Accounts (Isa) allowances have been set at £3,000 by the government but Fidelity International believes this has created a framework to allow parents to plan for their children's future and teach younger generations the importance of saving.

The investment fund manager calculated that if parents invested the full allowance, based on growth of five per cent per annum, by the time their child reaches 18 years old they could accumulate savings close to £108,000.

Tom Stevenson, investment director at Fidelity International, said: "We welcome the chancellor's announcement on junior Isas today and believe this is a really positive move which endorses the idea of saving from as early an age as possible."

Furthermore, with several universities in the UK expressing their intention to raise tuition fees to the highest-level of £9,000 a year, Fidelity believes junior Isas will prove an effective way for parents to ease the financial burden facing their children.

Recently, Moneynet said that providing more financial resources and advice to students who are at university would be a good idea to help them manage their money more effectively.