Tips designed to help young people take control of their financial situation during tough times are being shared by Uckfield-based Cranwell Wealth Solutions.
Advisor Steven Sanders says 18 to 25-year-olds have been hard hit as a result of the 2008 financial crash, unattainable housing, higher tuition fees, Brexit, and now the enormous impact of Covid-19.
But, he says, there are ways to get to grips with the situation.
Steven’s tips include:
Chancellor Rishi Sunak’s £2bn “kickstart scheme” ambition for people living in England is to create more jobs for young people. Those aged 16-24, claiming Universal Credit, and at risk of long-term unemployment, will be eligible. Here’s what the scheme entails:
- 6-month work placements aimed at 16-24 year olds
- New funding for National Careers Service
- High quality traineeships for young people. Plus funding to employers who provide trainees with work experience.
- Payments for employers who hire new apprentices under the age of 25.
- Investment in high value courses for school and college leavers.
Check here for the latest updates – https://www.gov.uk/government/news/rishis-plan-for-jobs-will-help-britain-bounce-back
How 18-25 year olds can help themselves
- Community spirit is high right now, so why not capture this sentiment and write to companies or individuals via Linkedin to ask for valuable work experience. Remind them of the Government schemes when you make an approach.
- When you do find regular employment begin contributing even a small amount to a pension. If you meet the criteria, your employer will also help by paying into the pension for you.
- Consider saving into an ISA for more tax efficient savings, rather than investing into cash savings accounts.
- But most importantly, do not delay in asking for financial advice. It is a common myth that you need to wait until you have wealth to see a financial adviser; this is simply not the case. Getting advice early on is vital.
How parents/grandparents can help
- Fund further or specialist courses and study to give you an edge over others.
- Free up some of their disposable income to contribute to a deposit for your first property.
- Parents and grandparents can also make small regular contributions into a pension for you.
- Grandparents and parents can consider using their annual gifting allowances, if they want to reduce their estate for Inheritance Tax Purposes.
Whatever you decide to do, Stephen says the very best advice he can give is to plan for the future now.
Cranwell Wealth Solutions would be happy to help. To book an appointment with a Financial Adviser there please call 01435 866101 or email Steven Sanders at firstname.lastname@example.org
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