Jill Mackay, Savings Specialist at Scottish Friendly, comments on the long-term benefits of giving children financial gifts this Christmas, and the need for JISA rules to be amended so that family members can set up accounts on behalf of loved ones.

As the countdown to Christmas begins, so does the pressure to spend. Wanting to give children, grandchildren, nephews and nieces the latest fad toy that will make their day is completely understandable. However, research conducted by 3Gem on behalf of modern mutual Scottish Friendly shows that financial alternatives that might provide a longer lasting gift for a child, by helping them to build greater financial resilience, would be appreciated by parents.

The research, amongst 1,500 parents, conducted last month, shows that just over half of parents (51%) say that they already provide extended family with a wish list of gifts for their child, and 71% of parents would consider including money or savings to a Junior ISA on such a list in future. 

Jill Mackay, Savings Specialist at Scottish Friendly:

We know from research we conducted earlier in the year that over a quarter of extended family would set up a JISA on behalf of their grandchild, niece, or nephew if the rules allowed it. And now we can see there is a clear appetite amongst parents to let extended family help them with life admin when they have their hands at their fullest – from birth to four years old. Long after the latest fad toy has lost its lustre, the life opportunities that are opened up to a child through greater financial resilience as they enter adulthood provide a priceless gift that keeps on giving.

That is why we would love to see one small change made to the line in the JISA rules, to allow extended family to set up JISAs on behalf of their loved ones. It’s a small change that would make a big difference to young people and their families and it would allow extended family to give the gift of greater financial resilience in future. It might not be as fun to unwrap, but our research shows that parents would thank them for it!

Full press  release: Parents want to see growing nest eggs under the tree, not just toys