We all want our children to have as many opportunities as possible in life. That is why we invest so much of our time and effort into teaching them the skills they will need to be able to do well in life. This is important, but, so is making sure that you have put away some cash to enable them to learn to drive or carry on their education.
Doing this will help them to start their adult lives the right way. It means that they can get more education or pursue an apprenticeship without running up crazy debts. Below are some easy ways for you to put aside money for your children’s long-term future.
Top of the list of possibilities is junior ISAs. You can find out more about this tax-efficient child savings scheme by clicking the link.
ISAs are really easy to set up and it is you that decides how much you but into each child’s accounts. But, there is an upper limit. At the time of writing this, the UK government allows adults to put up to £4,368 into junior ISAs for each child. You also get to choose between stocks and shares or cash ISAs.
Once in the account, that money belongs to your child, so you need to bear in mind that it cannot be accessed and used to deal with family emergencies. Your children cannot touch it either, at least not before they are 18. So, these ISAs are an effective way to truly lock away money for your child’s future.
Open a bank account for them
It is also a good idea to open an ordinary savings or bank account for your child. Doing so is a fantastic way to help them to learn about managing money, from an early age. That skill will help your children to avoid getting into debt when they become adults.
You can encourage them to use this account to save some of the cash you, friends and relatives give them in the form of pocket money and gifts. Most banks and building societies offer accounts for children, aged 7 and above. This article will help you to compare what each of them has to offer.
Give each of your children a piggy bank
If your children are too young for a bank account, get them a piggy bank, instead. Even very young kids soon get the saving bug when they start using one. They really enjoy playing with them and soon understand the principle of saving up to buy something a bit bigger which they really want.
Parents, grandparents and great-grandparents can buy premium bonds for children. They do not accrue interest. The odds of someone with £100 invested winning a £25 prize is currently 1 in 250. So, there is a chance that your child’s premium bonds could grow into a significant pot of money. Even if that does not happen when the child comes of age they can cash the bonds in and buy something important.
Don’t rush into anything
Please bear in mind that the above are only suggestions. We are not trained financial advisors, so it would be a good idea to do some further research before choosing the product you will use.