Teaching children the value of saving money is something that every parent should do. And traditionally one of the easiest ways to teach children about how to hang onto their money is to get them a savings account, typically started with Christmas or birthday money. But a regular savings account comes with all sorts of problems and complications that children shouldn’t have to deal with, so for savings conscious parents Junior ISAs might just be the answer.
A Junior ISA is a savings account specifically for children that is tax exempt, simple and straightforward. As such these accounts can save parents a world of headache trying to figure out where to report any money placed in an ISA by them or their children (perhaps teaching children about direct deposit for allowance, putting money directly into the bank). Additionally a Junior ISA comes with all of the benefits of a regular savings account without many of the fees or stipulations that come with standard accounts. Of course there will come a time where a child has to convert their Junior ISA into a standard savings account, but the goal is that by the time that’s necessary your little one will have grown up knowing how to save and manage their money.