Youth have knowledge gap for savings

Posted 2008-03-24

Many young people between the ages of 16 and 21 lack even a basic understanding of financial issues, it has been claimed. According to new research by Alliance & Leicester, some two thirds of individuals falling into the age group are unaware what the abbreviation ISA (Individual Savings Account) stands for. A further one in ten say they have never even heard of an ISA, while 16 per cent admit they make no attempt to put aside savings whatsoever. Emma Walkley, product manager at Alliance & Leicester, said that the earlier people pick up responsible spending habits, the more likely they will be to remain solvent in later life. "Young people should be encouraged to start saving early to ensure their financial future is safe," she said. "ISAs are often the first step into the world of regular saving, with customers able to make use of tax free advantages without risk on any amount from £1." The A&L survey found that almost a fifth (18 per cent) of young people find the concept of an ISA confusing.

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