Do you ever ask your 6 year old what they would do with their money when they are older? A charming insight into money by 6 year olds is worth 2 minutes of your time.
The poll of almost 200 six year olds looked into some of the most pressing financial topics, from pocket money to the dream 18th birthday present. The research gives a charming insight into money from a group of six year olds from across the UK.
The survey found that when estimating the cost of their first house, more than half (53%) thought it would set them back £10,000 or less – a far cry from today’s average house price of £163,000**. It also found that children expect a very modest salary when they grow up, with the average six year old anticipating the tiny sum of £100 a year. That’s just £1.92 a week or the equivalent to two packs of Haribo Starmix. However, when looking at their pocket money, children are a lot more frank with their demands. If pocket money was totally unlimited, six year olds said that they would opt for a whopping £20 a week – that’s the equivalent of 60 Cadbury’s Creme Eggs a week or £1,000 a year.
Spending their pocket money, however, is clearly not a problem. Albert Delaney, six, from Walthamstow, London said: “I get £2 a week and I spend my pocket money on sweets, Lego and Dr Who magazines”.
Other findings from the data include:
- Four in five (80%) six year olds think they will own a house before they are 25
- One in four (25%) six year olds believe £10 would be enough money to pay for everything they needed in life
- One in four (25%) six year olds expect to own their first car at the tender age of 12
- Over a quarter (27%) of children believe money makes the world go round
- One in five (19%) think money exists so they can buy sweets
- One in five (19%) think money exists solely to allow their family to go on holiday
Simon Ellis, Managing Director of Legal & General Investments, said: “Whilst our tongue in cheek research gives insight into the charming naivety of children, it is important to remember that financing your child’s future is a serious matter.”
He continued: “Teaching future generations to be ‘money wise’ should be a priority for all parents and opening a Junior ISA is a first step in preparing them to take control of their future finances. By teaching children the basics of managing savings, we pass on fundamental skills that will help them to mature into young adults.”
The new Junior ISA, which complements the Child Trust Fund, provides parents, family and friends with an attractive and tax efficient way of saving for eligible children up to a maximum annual allowance, which is currently £3,600.
Legal & General Investments has launched a stocks and shares Junior ISA which currently allows £3,600 of tax efficient savings each tax year. For more information visit legalandgeneral.com/investments/isas/junior-isa
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