Real life: How Danny’s saving for his child’s future

A few months ago, I wrote about the power of maxing out a Junior ISA and why it’s one of the smartest financial head starts you can give your child.

My piece obviously struck a chord with one customer, as he wrote to us after reading it, wanting to share his own investing journey.
That customer was Danny Benson - a self-taught investor who’s been investing £100 each month split between a Junior ISA and Junior SIPP for his daughter Emily since the day she was born.

• Learn about the difference between a Junior ISA and Junior SIPP

Twelve years later, Emily’s nest egg stands at over £28,000 - and it’s still growing.
This is Danny’s story - and a great reminder that you don’t need to be an expert to start investing in your child’s future. You just need to start.

Danny’s plan - starting from day one

Danny grew up in a family where financial planning was a visible, practical habit.

“I remember my dad sitting at the table with a pen and paper, writing down the household budget - incomings and outgoings, every month,” he recalls. “That stayed with me. I do the same - and now, Emily gets involved.”

Inspired by those early lessons, Danny became a natural saver. “When Emily was born, I was conscious about setting money aside for the long term,” he says.

When she was born, Danny committed to putting aside £100 a month. “Little and often – and forget about it,” he says. “It’s about building something she can use to take her own path, whatever that may be.”

He doesn’t have a financial adviser. Instead, he used Fidelity’s tools and articles to help him build confidence in a simple, low-cost approach. “I use global tracker funds and UK All Share indices – no fancy stuff,” he says. “It’s all about time in the market.”

Learning about money together

Emily’s understanding of money is already ahead of the curve. “She gets it - she really gets it,” says Danny. “She knows the money in her account is invested, and that it grows over time. And she actively wants to check it - she asks to open the app and see how it’s doing.”

• Learn about investing versus saving

Every year on her birthday, they sit down together to review her portfolio. It’s not just about the numbers - it’s about teaching her that money can be a tool.

Danny believes this kind of education should be standard. “Financial education should be taught in schools,” he says. “Kids are going to grow up and deal with money every day - they need to know how it works.”

I couldn’t agree more. It’s why I wrote this piece about Milestones and money: teaching your teen about their Junior ISA.

Keep it simple and stay consistent

Among colleagues and friends, Danny has become a trusted voice on investing for the next generation. “People come to me for advice - they want to know how I started investing for my kids,” he says. “I tell them the same thing I did - start small, keep it simple, and stay consistent.”

Danny’s approach is rooted in passive investing with low-cost tracker funds. “There’s too much noise out there making people think they need to be experts,” he explains. “But you don’t need to know about emerging markets or picking stocks. A global tracker and regular contributions will do the job.”

• Explore tracker fund ideas from our Select 50

Financial freedom, not conditions

Emily’s portfolio is around 75% in her JISA, with the remainder in a JSIPP. She may stay at home and attend university in Manchester - but Danny’s not placing any expectations on her. “It’s hers to use however she wants. University, a business, a deposit - whatever she decides.”

Any future inheritance expected from grandparents is also earmarked for Emily’s future, rather than paying down the family’s mortgage. “This isn’t about us,” Danny says. “It’s about giving her freedom and opportunity.”

Inspired? Here’s how to start saving for your child

Whether your child is already in school or still in nappies, it’s never too early - or too late - to start. If Danny’s story gave you food for thought, here are a few pointers to help you begin:

1. Start Small

You don’t need a lump sum. £25, £50 or £100 a month is enough to build momentum. The earlier you start, the longer your money has in the markets to potentially grow.

2. Choose the right account

• A Junior ISA lets you invest up to £9,000 a year, tax-free. The money is locked in until your child turns 18.
• A Junior SIPP allows you to invest £2,880 a year, with 20% tax relief added by the government - taking it to £3,600 annually.

Learn more about our junior accounts and open one here.

3. Choose your investments

You don’t need to be an expert. You might like to consider a global tracker fund or an index fund with low fees as a starting point. Just make sure whatever you pick is right for you, your circumstances and your goals.

Get help choosing your investments

4. Involve your child

Talking about money early builds confidence. Whether it’s a quick look at their account on their birthday or a bigger conversation about what it’s for, these moments help shape their future.

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. 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. A Junior ISA is only available to children under the age of 18 who are resident in the UK.  It is not possible to hold both a Junior ISA and a Child Trust Fund (CTF).  If your child was born between 1 September 2002 and 2 January 2011 the Government would have automatically opened a CTF on your child’s behalf.  If your child holds a CTF they can transfer the investment into a Junior ISA.  Please note that Fidelity does not allow for CTF transfers into a Junior ISA.  Parents or guardians can open the Junior ISA and manage the account but the money belongs to the child and the investment is locked away until the child reaches 18 years old. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice