(PRWEB UK) 4 May 2012
• Six year olds expect to pay less than £10,000 for their first house
- A quarter (25%) of six year olds plan to own their first car at the age of 12
- Their ‘dream’ amount of pocket money would be a whopping £20 a week
- One in four (27%) six year olds believe money ‘makes the world go round’
Research* from Legal & General Investments offers an insight into the world of personal finance through the eyes of six year old children.
To find out if finance really is child’s play, the poll of almost 200 six year olds looks into some of the most pressing financial topics, from pocket money to the dream 18th birthday present. The research accompanies the launch of the Legal & General Investments Finance is Child’s Play video - http://www.youtube.com/watch?v=MfG4cJzVV_I - which gives a charming insight into money from a group of six year olds from across the UK.
The survey found that when estimating the cost of their first house, more than half (53%) thought it would set them back £10,000 or less - a far cry from today’s average house price of £163,000**. It also found that children expect a very modest salary when they grow up, with the average six year old anticipating the tiny sum of £100 a year. That’s just £1.92 a week or the equivalent to two packs of Haribo Starmix. However, when looking at their pocket money, children are a lot more frank with their demands. If pocket money was totally unlimited, six year olds said that they would opt for a whopping £20 a week – that’s the equivalent of 60 Cadbury’s Creme Eggs a week or £1,000 a year.
Spending their pocket money, however, is clearly not a problem. Albert Delaney, six, from Walthamstow, London said: “I get £2 a week and I spend my pocket money on sweets, Lego and Dr Who magazines”.
Other findings from the data include:
- Four in five (80%) six year olds think they will own a house before they are 25
- One in four (25%) six year olds believe £10 would be enough money to pay for everything they needed in life
- One in four (25%) six year olds expect to own their first car at the tender age of 12
- Over a quarter (27%) of children believe money makes the world go round
- One in five (19%) think money exists so they can buy sweets
- One in five (19%) think money exists solely to allow their family to go on holiday
Simon Ellis, Managing Director of Legal & General Investments, said: “Whilst our tongue in cheek research gives insight into the charming naivety of children, it is important to remember that financing your child’s future is a serious matter.”
He continued: “Teaching future generations to be ‘money wise’ should be a priority for all parents and opening a Junior ISA is a first step in preparing them to take control of their future finances. By teaching children the basics of managing savings, we pass on fundamental skills that will help them to mature into young adults.”
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
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.
** According to Halifax House Price survey http://www.thisismoney.co.uk/money/mortgageshome/article-2124905/Halifax-house-prices-Average-property-massive-2-2-March.html?ito=feeds-newsxml
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.