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.

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