Scottish Friendly’s latest Investor Index has shown that since 2019, Scottish savers have opened more Junior ISAs (JISAs) than the rest of the UK, but rising cost pressures are limiting the amount people can save.
The leading financial mutual’s quarterly study of its members’ investment trends revealed that since the index was launched, five years ago, the number of JISAs opened by its Scottish members was up 225%, beating every other region in the UK.
However, the amount being put into JISAs by Scottish savers was down 31% over the same period, suggesting that the continued cost-of-living pressures are still restricting how much people can afford to put away.
Scotland was not the most impacted region however, with the East of England and West Midlands faring worse, down 39% and 38% respectively. The only region to see more money put into JISAs since 2019 was the South East, increasing by 34%.
Across the whole of the UK, the index also revealed that more women were opening JISAs versus men. Since the index launched, the number of new JISAs opened by women is up 128% compared to men (up by only 101%).
Scottish Friendly’s savings specialist, Jill Mackay commented on the data: “We’re continuing to see the shift of families saving for their children, even with ongoing cost pressures.
“From our recent Family Finance Tracker, we also know that over a third of Scottish households (35%) would describe their overall financial position right now as ‘uncomfortable’.
“Understandably being able to set aside a lot of money may not be an option with day-to-day cost pressures as they are. But starting as soon as possible and just putting a little away into a stocks and shares JISA could build to be a substantial amount over time.
“More can be done here too from a policy point of view to support those wanting to save for children. We believe that children’s savings could get a real boost if JISA rules were relaxed to allow other family members, such as grandparents, to be able to open up JISAs. Giving children a better financial foundation for when they enter adulthood can only be a good thing, and removing this barrier could make a real difference.”
