Almost four in 10 parents with children under 18 have no Junior ISA (JISA) open for their children, Scottish Friendly has found.

The mutual’s latest Family Finance Tracker research has found that 38 per cent of parents with children under 18 have no JISA in place for any of their children, with everyday pressures and a lack of knowledge among the barriers to getting started.

Among this group, more than a quarter (28 per cent) said they simply ‘haven’t got round to it’ – the single most cited reason for not having an account open.

A further (18 per cent) of those surveyed said they know nothing about JISAs, while 12 per cent said they have not had time to set one up because they have too much else to do for their child.

Scottish Friendly says the findings show how easily everyday pressures push saving for a child’s future down the list of priorities, even when parents intend to put money aside.

The mutual believes wider family members could play a greater role. Only a parent or legal guardian can open a JISA under the current rules, although others can contribute once an account has been set up.

Scottish Friendly continues to call for those rules to be relaxed so grandparents and other family members can open JISAs on behalf of the newest members of their wider family. This helps to remove some of the practical barriers to getting started, the mutual argues.

Its research furthermore suggests there is a growing appetite for greater flexibility: 39 per cent of UK adults said they would be likely to consider setting up a JISA for a child who was not their own if the rules allowed it.

Kevin Brown

The biggest barriers to good savings habits can often be the most ordinary ones. Many parents aren’t opposed to saving for their children. Instead, they simply haven’t got round to it, don’t know enough about JISAs, or have their hands full juggling the all-too-familiar demands of family life with young children.

The problem is all about time since the earlier money is put aside, the longer it has to grow. Every year that passes before saving starts is a year in which that money has missed the opportunity to benefit from compound growth for a child’s future.

There is clearly a willingness among wider family to help too, since nearly four in 10 adults say they would consider opening a JISA for someone else’s child if they could. But currently the rules get in the way, and that’s why we believe there is a case for greater flexibility around who can open these accounts.

Making it easier for grandparents and other family members to get started could help more children benefit from those early years of growth. For families already stretched for time and headspace, that could mean the difference between putting it off and giving a child a really meaningful financial headstart going into adulthood. That’s surely worth the effort of getting the rule tweaked – a small change that could make a big impact!