Rimmer says it is also useful to discuss various savings products, such as Junior Isas for children under 18 and for those who are 18 and above, the Lifetime Isa.
She says helping younger generations to save into a Lifetime Isa may also be a good option as the money can only be used towards the purchase of a first home, or in retirement.
Savings of up to £4,000 a year will benefit from a 25 per cent government bonus, which can make the gifted funds go even further.
Rimmer says: "Though there is a risk that this money can be accessed beforehand, and suffer an early withdrawal charge, often if money is held in a product such as this, being out of sight can keep it out of mind until the recipient is ready to use it for the intended purpose.”
Different strokes, different generational folks
Jeremy Robinson, director of private clients at Charles Stanley, also highlights how younger people view the world through a different lens than their parents.
He says: “For example, having seen the older generations benefit from asset price inflation, curtailing their expectations of home ownership. This will be a priority for inheritance as they feel shut out of the property market.
“Debt is also something that will be targeted, particularly given the rampant increase we have seen in interest rates since the end of 202.
"This should be prioritised before buying a property, but advisers have a pivotal role in helping clients transfer wealth in ways that accommodate their concerns and those of their beneficiaries.
“Regarding the investments they favour there is definitely a desire to consider investments that have “value” (not in the traditional investing sense!) but “value driven” investing such as identity or climate change focus.”
Robinson also points out how each generation has different levels of understanding and in many cases different levels of risk.
“Finding a 'purpose' for the wealth and communicating that with the family is also vital; a grandparent may want to leave a legacy, whereas their children might be concerned about funding their children’s education."
While these purposes are all valid, the intended purpose can have starkly different implications for the underlying asset allocation.
"Our task is to support clients in making these decisions, depending on what is required,” he adds.
Rimmer also highlights how people of all ages have different attitudes towards spending, suggesting this issue is not simply generational.
“It may even be that within a marriage you have one partner who is the saver and the other the spender, so it is about careful planning to ensure you strike the right balance that will ensure they are able to achieve their future financial goals while also being able to lead the life they wish to at present.
