Four Myths About Kids' Savings We All Need To Stop Believing

With A New Tax Year Starting In April, Here's How To Get To Grips With Saving For Your Child's Future

THE new tax year will start in April and for many parents and grandparents it's a time to consider how best to grow a nest egg for their child's future.

Junior ISAS, or JISAS, can be a good way to start. They are long-term, tax-free savings accounts available to under-18s.

Up to £9000 can be put into a Junior Isa in the current tax year, which ends on April 5, so if you haven't used the annual allowance yet, it's time to get your skates on. The annual limit for 2024-25 will remain at £9,000.

And while many families don't have anything like the full ISA allowance available to put into an account, they can still start to build up a sizeable nest egg for their children by putting smaller amounts away often.

According to calculations from investments and retirement savings provider Fidelity, some parents may even be able to build an £18,000 pot by the time their child turns 18, based on making monthly contributions throughout their life of £55.50.

This is because during the length of time the money invested, is savings can grow quite substantially.