A saving resolution for 2014
What new year’s resolutions did you make for this year? To go to the gym more often? Spend more time with your friends and family? Or how about to try and save a small amount regularly for your children's future?
If you went with the last option – or even if you didn’t – there are two reasons why now is a great time to set up an ethical junior ISA with The Children’s ISA.
First, there are several weeks before the end of the current tax year. During that time, you can put up to £3720 tax free into a junior ISA. A new allowance will begin with the new tax year on 6 April.
Also, with each junior ISA that is opened, we are donating £50 to support The Children’s Society’s great work supporting vulnerable children and young people across the country.
Find out how you can easily open an ethical junior ISA and support The Children's Society's work.
What a junior ISA can mean or a young person
Let’s say you open a junior ISA for your eight-year-old. Based on a £50 monthly contribution for 10 years, with a 5% growth per annum, this would accumulate to £7,764.
This could be used towards university fees and living costs, a first car or a house deposit or your child may want to keep it invested for a little longer after they turn 18.
If £100 a month could be contributed to a junior ISA for the same period of 10 years, based on the same 5% growth per annum, the junior ISA balance would increase to £15,528, which would give your child a significant start to their future.
With the cost of living increasing year on year, it is important to try and encourage a savings culture.
Contributions don’t necessarily need to be done on a monthly basis. A £100 contribution each Christmas over 10 years, assuming a 5% growth per year, would yield over £1320 in their Junior ISA.
Find out more about setting up an ethical junior ISA today.