Day 24 of 28 Days Richer
One thing each day that puts money in your pocket and takes 5 minutes or less.
Here’s how to give your child £40,000 on their 18th birthday – and it takes five minutes to set up.
It’s called a Junior ISA, and it’s one of the most powerful tools for building your child’s future.
How Junior ISAs Work
You can put in up to £9,000 per year.
The money grows completely tax-free.
And your child can’t touch it until they turn 18.
It’s locked away, growing, protected from teenage impulses.
The Maths
Put in £100 per month from birth.
At 7% average returns, that becomes over £40,000 by the time they’re 18.
You’ve only contributed £21,600. Compound interest did the rest.
Even £50 per month becomes roughly £20,000 by 18.
That’s a deposit on a flat, university costs covered, or a serious head start in life.
Today’s 5-Minute Action
Open a Junior Stocks and Shares ISA.
Vanguard, Fidelity, and Interactive Investor all offer them.
Set up a standing order for whatever you can afford – £25, £50, £100 per month.
The earlier you start, the more time compound interest has to work.
A child born today with £100/month invested has 18 years of growth ahead.
Cash vs Stocks and Shares
Over an 18-year period, stocks and shares historically outperform cash significantly.
The longer timeframe means you can ride out any short-term dips.
For a Junior ISA, stocks and shares almost always makes more sense than cash.
Future them will thank present you.
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