Prepare for life’s most precious moments with an ISA
From the joy of finding out you’re having a baby, to hearing their first words and seeing them take their first steps, parenthood is a magical journey.
All too soon though - as any parent will tell you - they’ll be off to ‘big school’. And it will probably feel as though no sooner have they brought home their first papier mache ‘work of art’, then they’re off, getting married and starting a family of their own. So enjoying every precious moment is important.
And it’s never too soon to start thinking ahead. Whether you’ve just found out you’re expecting, you’re getting ready to wave Junior off to nursery, or your 18-year-old has just headed off to college or university, after the inevitable tears, tantrums and teen angst, the last thing you want is a meltdown when it comes to your finances.
While every parent wants to give their child the best start in life and be there to help them along the path to adulthood and beyond, knowing you can be there to support them financially - as well as emotionally - is the ultimate way to get peace of mind.
Kids cost and, as any parent will tell you, that starts even before they’re born. And as these new costs typically come just as you take time off work to care for your new arrival, having savings to rely on will give you peace of mind at a time when you’ve got better things to worry about than paying unexpected bills and expenses.
It pays to think longer term too. Because if you’re considering private education, then you’ll have to be prepared to dig deep.
Not only do you have school fees to consider, you also need to factor in the cost of uniform, music and other extra-curricular lessons, books, trips and other incidentals. All in all, your child’s education is probably going to be the second-largest expense, after your mortgage.
Speaking of which, the Bank of Mum and Dad still plays an important role when it comes to helping first-time buyers get on the property ladder.
By regularly saving into an ISA you can plan ahead and know you could be financially able to support your children’s needs. Whatever they may be. And for however long you’re prepared to help them. Whether that is to pay school fees, give them a helping hand with college or uni costs, help them get a foot on the property ladder, contribute to their ‘big day’ or put your grandchildren on the path to financial security, an ISA helps you save and invest in the most tax-efficient way.
Opting to invest a regular monthly sum makes saving achievable for even the most cash-strapped of parents. You can save as little as £50 into a Stocks and Shares ISA and choose where the money is invested, while still being able to add lump sums, where possible, up to a maximum total of £20,000 in the current tax year.
With a Junior ISA you can also get your child or grandchild into the investing habit. Who knows, one day they may even thank you for it.
The value of investments, and the income from them, can go down as well as up, so you may not get back what you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. Junior ISAs are long term tax-efficient savings accounts for children. Withdrawals will not be possible until the child reaches age 18.
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