What’s the one thing you hope your child can afford as a grown-up? Whatever your dreams for your child’s future, they’re more likely to come true if you start putting money away today.
Here are five great reasons to open a Stocks & Shares Junior ISA for your child and start investing. Remember, the money in a Junior ISA is locked away until your child turns 18.
First home sweet home 🏡
What would young adults do without the Bank of Mum and Dad? They’d have to rent. Forever. Many parents want to help with a deposit but fear this will risk their own financial future. The solution may be to start squirreling money away now, as parents fork out an average of £32,440¹ on house deposits for their kids.
Degrees to please 🎓
You’ve spent their whole life ensuring they get a good education in the hope they’ll go to university. You already know the fees. But there’s also accommodation and day-to-day costs to think about. A recent report showed parents are expected to contribute over £15,000 a year towards a university education.²
Keys to a car 🚘
One day you’ll have had enough of being your child’s taxi driver. The solution: a multitude of driving lessons, a license and a first car. It’s estimated that the total cost of getting on the road is currently £7,100.³ And prices will continue rising.
Wedding bells ⛪
It’s hard to imagine your little one being old enough to walk down the aisle. But it’s probably going to happen. And their big day comes with a big price tag. The average cost of a wedding in the UK currently comes in at £20,775.⁴
Relieving pension tension 👴
Here’s a scary thought… your child as an old age pensioner. It’s a long way off but some day your little one will need to retire. The longer the pension pot has to grow, the better the chance of a comfortable retirement. A lump sum of £20,000 invested at age 18 could grow to over £400,000 by retirement age (based on historical average returns).⁵
Feeling inspired to invest?
The figures mentioned here may sound shockingly high, but it gets worse! With inflation devaluing the currency year after year, prices will only get higher. What costs £10,000 today is likely to cost more like £13,400 in 10 years (assuming 3% inflation).
Putting money away for your child in a Stocks & Shares Junior ISA may help your child prepare for the higher costs they will encounter at age 18. You can find out more and open a Junior ISA in the GoHenry app.
Capital at risk. The value of your investment can go down as well as up.
Junior ISA rules and terms and conditions apply. Tax treatment depends on an individual's circumstances and is subject to change. Investment services are provided by GoHenry Limited, a firm authorised and regulated by the Financial Conduct Authority (FRN: 1013107).
Sources
-
Revealed: how much parents give their children to help them buy a home (Zoopla)
-
Parents in England expected to contribute up to £15,000 a year… (Money Saving Expert)
-
The cost of getting on the road (Go Compare)
-
How much does a wedding cost (Bridebook)
-
This is the average stock market return over 60 years (Investors.com)
