Legal & General Investments

August 06, 2012 06:32 ET

Two in Five London Children Expect a Car for Their 18th Birthday, Reveals Research From Legal & General Investments

- Two in five (43%) youngsters assume that their parents will help with a house or flat deposit when the time comes

- 18% of youngsters believe they will need to earn GBP 50,000 to meet their needs

- 73% of youngsters from London spend all their pocket money every week

SURREY, UNITED KINGDOM--(Marketwire - Aug. 6, 2012) -

New research* from Legal & General Investments offers an insight into the world of personal finance through the eyes of youngsters in London.

The poll of 1,000 six to fifteen year olds, from across the UK, delves into some of the most pressing financial topics on a youngsters agenda, from pocket money to the dream 18th birthday present. In line with the national trend, almost three-quarters (73%) of London's youth spend all their pocket money every week. Encouragingly, those who don't spend their pocket money choose to put aside for the love of saving (34%) or save it for holiday spending money (14%).

When it comes to their 18th birthday, two in five (41%) set their sights high, hoping for a car, while 14% would like a computer. It's also apparent that expectations of parents remain high throughout a child's life with 43% of youngsters assuming that their parents will help with a deposit for a home. And with one in five (19%) believing they will have their first house at the tender age of 21, parents should start saving now.

The research also showed that youngsters in London are conscious of the financial burdens facing them with a fifth (19%) believing they will need to earn £50,000 when they're older. In the current economic climate they also concede that they could be working for up to 50 years with 28% of youngsters ticking this box.

To accompany the research Legal & General Investments has launched the Finance is Child's Play video, providing a quirky insight into the money savviness of today's youth.

Claire Evans, marketing director of Legal & General Investments, said: "Our research, while tongue in cheek, does remind us of the importance of financial education and encouraging our children to be money wise."

She continued: "As parents, we want the absolute best for our children. This includes giving them a helping hand as they take their first steps into adulthood. A Junior ISA allows parents to put aside money for that future while, at the same time, teaching our children the value and responsibility of managing money."

The new Junior ISA, which complements the Child Trust Fund, provides parents, family and friends with an attractive and tax efficient way of saving for eligible children up to a maximum annual allowance, which is currently £3,600.

Legal & General Investments has launched a stocks and shares Junior ISA which currently allows £3,600 of tax efficient savings each tax year. For more information visit legalandgeneral.com/investments/isas/junior-isa.

NOTES TO EDITORS

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

* Figures from OnePoll. Total sample size was 1,000 UK children aged 6 to 15 years. Fieldwork was undertaken 6 February 2012. The survey was carried out online.

This is a stocks and shares Junior ISA, so the value of the investment may fall as well as rise and is not guaranteed. The child could get back less than the amount invested. The money is locked away until the child becomes 18 when it rolls up into an adult ISA. It should be viewed as a medium to long-term investment of at least five years.

The tax assumptions we have made are those currently relevant, but tax laws can change over time. The value of the tax benefits depends on individual circumstances.

The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at 31 December 2011, we were responsible for investing £378 billion worldwide on behalf of investors, policyholders and shareholders. We also have over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.

Contact Information

  • Richard King
    Head of Media Relations
    020 3124 2095
    richard.king@group.landg.com

    Legal & General (Portfolio Management Services) Limited
    Registered address:
    One Coleman Street
    London EC2R 5AA
    Registered in England 2457525.