Saving for children

We all worry about how our kids will fare when they grow up. AIC research shows that 60% of parents feel anxious about their children’s financial future. Grandparents are concerned too, with 41% of them feeling anxious and 44% wanting to do more to help.

With a bit of planning, we can take some of the financial pressure off when the kids leave home and face their first big expenses.

Whether it’s paying for university costs, money for a car or deposit for a home, if you start to save well in advance, with regular or lump sum savings into an investment trust (investment company) you can accumulate a substantial amount by the time the kids grow up.

For example, if you’d used an ISA to start investing £50 a month in an investment trust 18 years ago, you’d have a nest egg today of £31,862 today. Far exceeding returns on cash over the same period.¹

It’s understandable that many people are wary about investing in stocks and shares; the stock market is a risky place to put your money over the very short term, as markets jump up and down in value on a daily basis.

But over the longer term, it’s a different story. According to research going back to 1899 conducted by Barclays Bank, there has never been a ten-year period where stocks and shares have not outperformed cash in either the UK or the US.²

But where to start and which trust to choose? Don’t worry, we have all the resources you need to plan effectively and secure your children’s future.  

1. Based on investing £50 every month in the average investment trust in the 18 years to 31/12/24. Source: theaic.co.uk / Morningstar.   
2. Source: Barclays Equity Gilt Study 2024.