⏳ Reading Time: 4 minutesSaving for the future is often seen as difficult, time-consuming, and a distraction from enjoying the present. It’s time to flip that idea on its head. Saving doesn’t have to be hard, and when it comes to saving for your children, there are powerful forces working in your favour that go almost entirely unnoticed. This article looks at why saving for your child’s future is one of the simplest, most effective things you can do as a parent, and how a small amount set aside today can grow into a meaningful sum by the time they reach adulthood, giving them a genuine helping hand into the big wide world.
Where to start
A good place to begin is deciding where to save for your children. Many parents set aside a small amount from their monthly pay, say £10, £25 or £50, earmarked for their child’s future. Once this savings amount is established, the question then becomes, what should you actually do with it?
The first port of call for most parents is the Junior ISA, or JISA as it is more commonly known. This is a tax-free wrapper that allows parents to contribute up to £9,000 per tax year on behalf of their child, with any growth or interest completely free of tax. Every child can have their own JISA, and each one comes with its own separate £9,000 annual allowance.
