The tax-free way to save thousands for your children by the time they turn 18
The savvy way parents can set up their children’s future – and it’s tax free
- Investing for children through Junior ISAs (JISAs) offers significantly higher returns than traditional savings, with up to £9,000 annually allowed until age 18.
- Despite the potential for greater growth, a substantial portion of JISA funds are still held in cash, limiting their long-term value.
- Experts recommend a growth-oriented investment strategy for JISAs, particularly in equities, due to the extended 18-year investment horizon which allows for riding out market fluctuations.
- Illustrative examples show that consistent investment, even small amounts like £50 or £100 monthly, can accumulate substantial sums, with maxed-out accounts potentially reaching over £237,000.
- Various investment funds are suggested, catering to different preferences such as global growth, emerging markets, technology, and capital preservation as the child approaches 18.