Management Consulting

In 2005, the UK government introduced Child Trust Funds (CTFs) to encourage savings among children born between September 2002 and January 2011. As these children reach the age of 16, they will gain control over their CTF accounts, which have accumulated significant funds due to government contributions and family savings. With approximately 6.1 million CTFs established, the total value of these accounts is estimated at £9.3 billion, averaging £2,175 per account holder. The challenge identified is the general lack of financial education among young people, which contributes to financial vulnerability. A survey by the Financial Conduct Authority revealed that half of UK adults are financially vulnerable, with the 18-24 age group exhibiting the lowest financial resilience and confidence. To address this, Aon emphasizes the importance of engaging young people in financial discussions as they approach the age of 16. By encouraging them to explore investment options and understand the implications of their financial decisions, Aon aims to foster a lasting interest in financial management. A tailored solution proposed includes educational initiatives that contextualize financial concepts for young people. For instance, they could be encouraged to research sustainable investment options or track the performance of stocks related to their interests, such as sports or technology. This proactive approach not only prepares them for immediate financial decisions but also aims to instill a lifelong understanding of financial well-being, ultimately reducing future financial vulnerability as they transition into adulthood.