Don’t just bank on savings to raise interest

While most parents are putting money aside for their children, few are using long-term investment or savings accounts designed to grow wealth tax-free. Only 21 per cent of Scottish parents have opened a JISA for their child, while 29 per cent have opened a Junior Cash ISA. This compares with 59 per cent who have set up a standard bank account for their child.

The divide is even more pronounced when it comes to conversations about money. Just 29 per cent of Scottish parents have talked to their children about investing, compared with 71 per cent who discuss saving.

Even among parents who recognise the limitations of cash savings, caution still dominates decision making. Of those that hold a Junior Cash ISA, more than one in five of UK parents say they are aware that they are likely to underperform over the long term, but still prefer them because they feel more secure.

Investing confidence often starts with parents

The study found that among UK parents who hold a Stocks and Shares ISA themselves, more than two thirds have also opened a Junior Stocks and Shares ISA for their child, highlighting how familiarity with investing influences whether children are introduced to the topic.

The results come as policymakers focus on improving household participation in UK capital markets. While debate centres on pensions, tax incentives, and investment products, the findings suggest that Britain’s current investing gap may begin at home, shaped by the financial attitudes children learn from their families.

Angeline Ong, senior investments analyst at IG Group, says: “Saving is essential, but when conversations about money stop there, children grow up seeing investing as complicated or intimidating rather than a normal part of long-term financial planning.

“Making investing feel familiar from an early age is key to building household participation in UK markets.”

Mums lead early money lessons but not so much in investment

The IG research also shows differences in how financial lessons happen at home. Mothers are slightly more likely to lead day-to-day money discussions – particularly around budgeting and spending –but significantly less likely to discuss investing.

Just 24 per cent of UK mothers said they have talked to their children about investing compared with37 per cent of fathers. Mothers are also more likely to avoid financial risk entirely when saving for their child’s future.

Peanut, which connects millions of women across the UK and provides a platform for conversations around parenting, finance, and family life, says the findings reflect wider discussions among mothers about financial confidence and responsibility.

Michelle Kennedy, founder and chief executive of Peanut, comments: “Many mums are leading the day-to-day conversations about money in their households, from budgeting to pocket money, but investing is often something they haven’t always been given the same exposure or confidence around.

“This research highlights a real opportunity. If we can help make investing feel more accessible and understandable for parents – particularly mothers – we can give families the confidence to talk about long-term wealth building alongside saving.”