Almost half (47%) of those saving into a JISA for a child or relative hope the money will go towards paying for university or higher education, a new survey from Willis Owen reveals. Buying a property ranked a close second with 43% hoping the JISA will help cover the cost of a deposit for a first home.
Other potential uses favoured by JISA investors included paying for a car (34%) and travelling the world (22%). Less than half (42%) of those saving into JISAs for loved ones would like the money to remain invested.
Regionally, almost two thirds (58%) of JISA investors in London and half of those in the West Midlands are most likely to save for university or higher education whilst two thirds of those living in Yorks and the Humber are most likely to invest in JISAs to help buy a property. Half of the JISA investors in Northern Ireland hope their loved ones use the money to buy a car or travel the world.
Scots are the least likely to invest in JISAs for children or relatives to buy a property but nearly half (45%) hope their funds will pay for higher education and over a third (34%) would like the money to be used for buying a car.
Adrian Lowcock, Head of Personal Investing, Willis Owen, says:
“When investing into an ISA it is important to have clear goals in mind. Clearly JISA investors are currently most focused on saving for university and higher education, which is understandable given spiralling university fees and the mounting cost of living.
“Interestingly, saving for further education or university ranked even higher than saving for a property, which could be because homeownership has sadly become virtually unattainable for so many young people, especially those living in London.
“Another emerging trend, particularly among parents and relatives under the age of 45, is the growing desire to invest in JISAs so children can travel the world. This is far less common among the older generation of investors who tend to prefer to save for higher education or property.”