Family investing

Whether it’s a little bit of money in a birthday card or something more substantial, grandparents often want to help with their grandchildren’s financial futures. Our guide weighs up the differences between traditional ISAs and Junior ISAs, so grandparents can decide which may better suit their grandchild’s needs. 

When was the last time you thought about your future self?

The earlier you start investing for a child’s future, the better the outcomes may be. Here we look at what options you have and see why it’s never too late to start.

Netflix, avocado, coffee and brunch – we’ve all heard the clichés blaming Generation Rent’s struggles on their spending habits. Over the years a range of influential voices have come out and declared they’ve found the secret to reversing the decline in home ownership among the young, which has fallen continually over the past 30 years.[1]

We are a nation of homeowners – at least notionally we are. While the UK has traditionally had a love affair with property and home ownership – fostered by successive government initiatives from right to buy to help to buy – the reality is that for many getting a foot on the property ladder has never felt harder. 

In the coming years, the cost of living could well be even higher than it is today, especially for younger people who have yet to build wealth. With this in mind, we look at two tax-efficient investment options that could help give today’s children a financial steppingstone for adulthood.  

The Lifetime ISA, or LISA, is a government scheme for the younger generation that offers up to £33,000 in cash bonuses for money intended for two big financial goals – buying a first home and retirement.

The pandemic has brought the importance of being financially prepared into the spotlight. Coupled with concerns around climate change, growing numbers of adults have been investing in socially responsible investments for their child’s future.

Whether it’s in the form of cash in birthday cards or something more substantial, the idea of grandparents helping to give their grandchildren a financial head start is not new. In fact, our client services team regularly hears from grandparents looking to put some money away for young children. So, what options do grandparents have? 

The Junior ISA (or JISA) has captured plenty of attention in the eight years since its introduction. Understandably so, given many young people are either struggling to get a foot on the property ladder or shouldering thousands of pounds in student debt – or both. 

When it comes to your children’s future, not much is predictable. You don’t know if your child will be gay or straight, artistic or sporty, a deep-sea diver or Wimbledon champion. However, one thing you can be fairly certain of is that they’ll need a place to live when they grow up. How do you ensure the Bank of Mum and Dad has enough in it to help them?

Families come in all shapes and sizes – some you’re born into, some you choose, and some who choose you. Here are our top tips for managing the finances of your family, whatever yours looks like.