They say it takes a village to raise a child. And with the cost of everything gradually increasing as the years go on, the next generation might need all the help they can get when it comes to saving for things like going to university or getting on the property ladder.
So, what could you do to help your child achieve the dreams that they may not even know they have yet? With Christmas just around the corner, you – and your nearest and dearest – could give them a gift that keeps on giving with a little something called a Junior ISA.
What is a Junior ISA and how does it work?
A Junior ISA (or ‘JISA’) is a savings or investment account that you – as their parent or guardian – can set up for your little one and help them give them a financial head start in life. You can pay in as little or as much as you like, as often as you like, and this money will be safely tucked away until your child turns 18. This is because the money in a Junior ISA belongs to the child, not the parent, so it can only be accessed by them.
And if you choose a Junior Stocks and Shares ISA (such as the one offered by Wealthify), your child’s savings will be invested in the stock market – meaning that they could grow further than they would sitting in a bank or savings account. When you invest in an ISA for your little one, they also won’t pay tax on any gains they make. However, please remember that with all investing your capital is at risk, so you could get back less than you put in.
This means that by putting money away in a Junior ISA for your child instead of buying them another plastic toy that will be played with for a couple of months before being thrown in the bin, you won’t just be saving for their future – you could help to give them a better one by reducing wasteful gifting that hurts our planet.
Can others contribute to my child’s Junior ISA?
One of the best things about Wealthify’s Junior ISA is that your friends and family can contribute too. So, if they’ve asked you what to buy for your little one this Christmas, this could be a great option as it could make a big difference to their future. They’ll also have the option to make a one-off payment or regular contributions to their Junior ISA – so they could keep adding to it every Christmas!
Visit the Wealthify website to find out more about their award-winning Junior ISA and how it works.
Please remember that investments in your child’s Junior ISA can go down in value as well as up, so your child could get back less than you invest.