Two of my own children have said to me, when encountering for the first time pensions, ISAs, bank accounts, credit cards and overdrafts, that ‘they should teach us this stuff at school’. Pensions arrive with a first job, and first thoughts are likely to be ‘why do I need this? Plenty of time, isn’t there?’ And what’s the point of an ISA? Is there any harm in taking all that free money the credit card company’s offering? Only 14% of 18-24 year-olds passed a ‘financial literacy test’, while with the gift of perhaps bitter experience, 65% of over-60s managed it. Should you be burdened with all that when in the bloom of youth and out for a good time? Isn’t it better to wait until you’re ready for the millstone of a mortgage and the responsibility of kids and career? Well, no, it’s probably far more useful than a knowledge of precipitation in the Andes or Bismarck’s politics in 19th century Germany, both of which delights I remember tackling before the age of 16.
“Reeves backs down on plans to cut ISA limit”
So it looks as though Cash ISAs are safe for the moment (FTM – is that a thing?) Rachel has apparently ‘bowed to pressure’ from the banks and building societies and decided not to reduce the allowance to £4,000 for cash and to keep the £20,000 parity with Stocks and Shares ISAs. Bowed also to common sense, I’d say.
