More and more in Financial Services we are seeing an increasing trend of making financial planning more accessible for younger generations – and rightly so. Quite simply, Millennials and Gen Z deserve to be given the right tools to manage their money and make the right decisions.
Making decisions about the spare bit of cash you have; whether to stay in your company’s pension scheme; and what type of life insurance you should have when you have your first child, are all quite frankly, minefields for the inexperienced. Some of these decisions can have huge impacts later down the line too.
“I’ve got £50 a month spare – not enough to make a difference”
Above is a perfect example of how changing our mindset especially at a younger age, can really make a different to your future finances. Investing just £50 per month can have a strong compound effect over the course of a few years. In a basic example where we have used a 5% growth rate per year (investing can be risky of course, and a return can never be guaranteed. 5% for example, is not guaranteed!), then in 10 years that £50 a month could be worth £7,877, as opposed to the £6,000 if you’d “stuck it under the mattress”.
A rise in financial blogs, tiktok stars talking about money tips, and podcasts such as Iona Bain’s “Own It!” (part of their Young Money brand) are increasing in popularity, and are helping pave the way for a more money-savvy younger generation.
We recognise the huge importance of financial planning to the next generation – and in fact are in the process of launching an incredibly exciting new service, Informed Generation, which will offer accessible financial advice to younger generations (watch this space) – see our Head of Business Development Jess on our social media feed here showing just how excited we are about this!
We also produced a series of Financial Education videos for children aged 9 to 16 during the early stages of the pandemic. These were designed to help parents with resources to home school their kids during the dark days of Lockdown 1.0 – but we hope anyone will find these videos super informative and fun! We whole heartedly believe that it is never to early to learn about money!
The videos cover things such as:
- How credit ratings work and why they are important
- How to read your first wage-slip and why money is deducted for tax and national insurance
- What different types of bank accounts there are
- How insurance works
The videos and worksheets can be found here.
Risk Warning: The value of your investments can go down as well as up, so you could get back less than you invested.