Feb 23 2007
News stories this month highlighted a divided world of financial opportunity and worry for young people in Britain today.
Concerns of teenagers in the UK were brought to the fore when a Personal Finance Education Group report revealed that around two-thirds of young adults think about money matters every day, with nine in ten admitting to worries about spending.
These fears were backed up by a claim from GE Life that tuition fees and the general cost of living is resulting in parents increasingly being forced to financially support their kids through adulthood, with 64 per cent of parents assisting their adult children with money.
While some youngsters may benefit from a large inheritance from wealthy and well-meaning relatives, Saga revealed that with many adults believing children should wait until they are 21 to receive an inheritance, a hefty tax bill could be levied on any funds received.
However, it wasn't all doom and gloom for young people in February. For every financial worry there appeared to be a possible solution, the simplest seeming to be old fashioned pocket money.
Engage Mutual Assurance noted that while contributions to child trust funds (CTFs) and other savings vehicles for children were always to be welcomed, giving kids a regular allowance could impart valuable budgeting skills that could hold them in good stead in the future.
Meanwhile, The Children's Mutual backed the CTF itself to help young people out with their future finances, noting that children could use the money from a fund set up early on in life to assist with the cost of university tuition when they fly the nest.
For those looking to the years beyond childhood, it was announced that reforms introduced by the government enabling young people to simply roll over their CTF into an individual savings account (Isa) when they reach 18 would be in place from April 2008, a year sooner than previously thought.
Finally, even inheritance tax (IHT) concerns were reduced, as a survey from Zurich revealed that many financial advisers believe consumers to be unaware of the implications of new legislation, it also reported that nine in ten advisers believe themselves capable of helping us protect our money from the chancellor.
