How to help 'accidentally wealthy' young people

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How to help 'accidentally wealthy' young people

Many people, especially younger generations, have had "more time to reflect" on their financial situations over the pandemic, an adviser has claimed.

Ian White, managing director of Beckett Investment Management Group, told FTAdviser In Focus that Covid-19 had shifted people's priorities but it was important to help continue positive savings trends over the next few years.

Speaking to Joy Brooks-Gilzeane on the FTAdviser In Focus Fireside Chat, he said: "For many of the younger generation, they have had time to reflect and have had time to think about things - as we all have.

"But maybe for the younger generation this is the first time they have had the time to sit down and think about their finances in detail. For some, they feel they have been able to control their finances - probably the only thing they could control - and perhaps a sense of achievement in savings."

Tools are not a panacea but they can provide a starting-point for the younger generation about how to handle money. White

However, he also said young people needed to be able to bounce back after periods of furlough or job insecurity in order to thrive in future, and this would depend largely on their circumstances and situations. 

But technology is also needed to help support people in their journey to become more financially resilient as we come out of the Covid restrictions and towards the so-called Great Wealth Transfer. 

He said: "There are far more financial tools available than ever before. Some of these are absolutely superb, be it cash flow analysis and financial planning tools or savings apps to help people make small savings on a daily basis.

"Some of the younger members of my team said their spending habits had changed over the past 12 to 18 months and they have realised how much they were spending on discretionary items pre-pandemic.

"Tools are not a panacea but they can provide a starting-point for the younger generation about how to handle money and how to use it."

To listen to the full fireside chat, click on the image above.