How can I build a nest egg for when my children need it?

The prospect of your child growing up, and how to fund this, is scary. When you consider the rising costs associated with your child, there’s no doubt it makes sense to start early, and saving regularly can help build them a future nest egg. Our CHW Bolton Accountants can help you plan for the future and help to build a nest egg for when your children need it.

In a recent survey conducted in October 2016 (*), almost half (48%) said they had saved or invested money for a child or grandchild under 18. The most common form of saving has been into bank savings accounts, despite interest rates on cash savings being near record lows.

14% reported that they had used Junior Individual Savings Account (JISA).

Currently, only parents or guardians can open a Junior ISA for a child. The survey found that 31% of grandparents would be more likely to save or invest for their grandchildren if they could open a Junior ISA themselves.

There are two types available: Cash or Stocks and Shares. The current tax year allowance is £4,128. Any interest or growth is free of income and capital gains tax.

Cash is similar to traditional savings accounts, but low interest rates could mean returns struggle to keep pace with inflation longer-term.

Stocks and Shares puts capital into investment funds, bonds or shares. There are various options available linked to your appetite for risk and reward. This offers greater growth potential over the longer-term, but be mindful the value of the investment can also go down.

When thinking about investing through JISA, it’s important to remember that JISA tax rules may change in the future.

If you’re thinking of building a nest egg for your children, ensure you contact our Bolton Accountants to help you devise a suitable and affordable plan. For any more information please contact us via our enquiry form.


This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.

DID YOU FIND THIS USEFUL?

Share it with your network:  

Want more great content?
Sign up to our newsletter

    Follow us

    Tweets by @CHW-accounting

    CHW-Accounting
    @chw-accounting


    Twitter: chw_accounting

    Read enough?

    Want to find out how we can help you and your business? Get in touch today and let's have a chat.

    WHAT'S THE NEWS?

    Grab a biscuit and a brew and read our latest news.

    8 March 2022

    Temporary reduced VAT rate for leisure and hospitality to...

    by

    On 8 July 2020, as an urgent response to the pandemic, the government announced a number of VAT measures including a temporary reduction of the VAT…


    Read more >

    1 March 2022

    National Minimum and National Living Wage changes April 2022

    by

    From 1 April 2022, the government is increasing but the National Minimum and National Living Wage rates. The National Minimum Wage is the minimum amount an…


    Read more >

    22 February 2022

    Dividend taxes to rise from 6 April 2022 –...

    by

    The government has confirmed that it will not be backing down on the planned hike in National Insurance (NI) and dividend tax from April 2022. There…


    Read more >

    10 January 2022

    Late filing and late payment penalties are to be...

    by

    HMRC has given self-assessment taxpayers more time to ease COVID-19 pressures. With the self-assessment deadline less than three weeks away, many individuals and agents will be…


    Read more >

    7 January 2022

    Making tax digital for VAT – April 2022 –...

    by

    Since 1 April 2019, VAT-registered businesses with a turnover above the VAT registration threshold of £85,000 have been required to keep their records digitally and provide…


    Read more >

    YOUR CHALLENGES

    No matter what your challenge is, we’ve probably dealt with it before.



    Need an Accountant?

    Get in touch >


    Need an Accountant?

    Get in touch >


    Tax issues?

    Find out more >


    Tax issues?

    Find out more >


    Trying to grow your business?

    We can help >


    Trying to grow your business?

    We can help >


    Managing cashflow?

    We can help >


    Managing cashflow?

    We can help >


    Starting a business?

    We can help >


    Starting a business?

    We can help >


    Looking for funding?

    Need help with funding? >


    Looking for funding?

    Need help with funding? >


    Buying or selling a business?

    We can help >


    Buying or selling a business?

    We can help >


    Adopt the cloud?

    We can help >


    Adopt the cloud?

    We can help >


    What else can we do for you?

    We can help >


    What else can we do for you?

    We can help >
    CONTACT US

    Get in touch, no hard sell, just a brew, a biscuit and a chat.