JUNIOR JAR
JUNIOR ISA
It is never too early to start saving for children.
They are at an age where they don't really understand the concept of money. But that does not mean you should not help them a bit.
Start with a Junior ISA and pay a little into it. Ask their grand-parents and other relatives to pay into it for their birthdays or holidays.
The limits are fairly low but they will still get the benefit of compounded, tax free investment growth until they become 18 and the Junior ISA matures into a full blown adult ISA.
As this fund will have 18 years to grow, even a small, regular amount will convert into a significant chunk that could then be used for their university fees, first house, first car or any significant expense.
Start early though - the powers of compounding will truly turn this into the best thing you could have done for your kids.
JUNIOR SIPP
This is similar to an adult SIPP and it has the same tax benefits. The Government will put in an additional 20% on top of your contribution.
The children will be able to access the funds from their mid to late fifties so this pot has an ultra long time frame to grow.
This is absolutely the best gift you can give to your children.
Hopefully, as they grow older start on their own life journeys, this support will enable them to continue the contributions which ultimately will help them when they retire.
A pension seems ages away when a child is born, but if it is started early, then it will become a great contributor to a comfortable life, later on in life.
EARLY START
The key to Junior ISA and Junior SIPP accounts is to start them as early as possible.
One of the problems is that children are expensive and young parents really do not have much spare to start these accounts.
Take help from their grand-parents who may be able to assist. As money becomes a bit more free flowing with passing time, you can continue adding to their account.
CHANCE OF A LIFETIME
Few children have the luxury of a secure adulthood and retirement if they are not from already wealthy families.
However, giving them an edge in life does not mean that you must have thousands of spare pounds available.
Time is on your side, and due to the advantages of compounding, the initial monthly amount does not have to be very much.
Even a token amount will grow into a significant pot.
When they grow up and look back, they will be grateful about the decisions you took that gave them a chance of a lifetime.
Hopefully they will do the same for their children.
LOOKING BEYOND
So, that was it.
JarInv would like to thank you for your patience and your willingness to read through a rather dry subject.
We wish you all the best of luck for success - but, if you take some of the recommendations and turn them into action, you will not need much of it to succeed.
Arrivederci!