Back-to-School Financial Check-Up: Are Parents Doing Their Homework?
Back-to-School Financial Check-Up: Are Parents Doing Their Homework?
Is back-to-school more than just new uniforms? A new Aviva survey reveals it's a key time for parents to tackle their finances. Discover what triggers financial reviews and how people manage extra income!
The back-to-school period after the summer holidays isn't just about new uniforms and stationery; it's a significant trigger for many parents to review their finances. A recent survey indicates that more than a quarter (27%) of parents are prompted to take a fresh look at their financial situation or investments during this time, more so than at other points in the year.
While back-to-school is a key moment for parents, the survey, conducted for Aviva, also identified other major financial triggers across the general population. Receiving a pay rise or bonus tops the list, with 39% of respondents stating this makes them more likely to review their finances. Changes in interest rates encourage 35% of people to check their financial health, while the end of the tax year prompts 34%.
For a third (33%) of individuals, the new year serves as a catalyst to delve into their finances and make a fresh start. Despite these financial review points, the survey highlighted an interesting trend in how people manage extra income. Just 17% of respondents said they would invest any additional money received from a pay rise or bonus.
A larger portion, 38%, indicated they would save the money, while 28% admitted they would simply spend it.
When it comes to the motivations behind investing, common reasons cited included preparing for retirement, growing long-term wealth, and establishing a regular income. Family milestones also play a crucial role in prompting financial reviews and investments.
Events such as having children, purchasing a first home, getting married, or entering a long-term relationship were all identified as moments that encourage people to consider their financial future more seriously. Alistair McQueen, head of savings and retirement at Aviva, commented on the findings, stating, "Most of us don't choose to review our finances out of the blue.
It tends to happen when something changes in our lives." This sentiment underscores the survey's findings that life events, both personal and economic, are powerful motivators for engaging with one's financial well-being.
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