Children’s Savings – The Sensible Way to Save
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by: Gareth Hoyle
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Word Count: 373
Date: Fri, 4 Nov 2011 Time: 2:01 AM
Not every child under the age of eighteen has been able to take advantage of the child trust fund. Many children were not eligible for this savings method due to the fact that they were born too late or before the system of the trust fund was put in place. Therefore a new form of childrens savings account has been introduced and will be available to kids under the age of 16 from the 1st of November.
The Junior ISA
The new system which will soon be in place is known as the junior individual savings account. They are a new way of create childrens savings which are tax free. You can open an account for your child providing they were not considered to be eligible for the trust fund. This is a fantastic way of securing some financial security for your child to use when they need it most.
It could be put towards university tuition fees, setting up a first home or even getting on the road. Another use is for gap year teens who wish to see the world before heading back into their studies. All these things cost money, and by saving for them now you are able to relieve yourself of the financial pressures which come when your child reaches the age of eighteen.
Slowly Create a Financial Nest Egg
Childrens savings accounts can be added to throughout the year. The junior ISA allows you to pay up to £3600 per tax year which can be paid in one go or through regular payments. If you want other family members to pay in too this is possible, providing the limit is not reached.
Only the child whose name the childrens savings account is in is able to take out the money. This stops you from tapping into it when funding is low. It’s a great way of making sure the money is safe and secure and ready to be used when the child comes of age. If you wish to create some form of savings for your child it is worth considering the brand new junior ISA. Look online to find out more and to source an excellent provider of these accounts.
About the Author
Chidrens savings accounts are an excellent way of helping your child get on their feet once they reach the age of eighteen. Junior ISA’s are ideal childrens savings options for kids who missed out on the Child Trust Fund.
