Child Plans – Investing From Early Age

child investment plans

In the United Kingdom today, most families, to build on the rather uncertain future, are constantly encouraging their children to save up some little cash once in a while. Some parents have also decided to chip in too, by depositing a suitable amount of money into their accounts. In so doing, not only can they commence their adult life with some added advantage over their counterparts, but the practice will also help them learn more about money.


The following are some available avenues or options to take with the primary objective of encouraging a new children plan In Europe.

children investment plans

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Deciding On a Child Plan and Identifying Children Savings Products


Establishing a Children’s Savings Account

Many parents are now setting up accounts with public banks and financial establishments for the benefit of their children mostly around the age of seven or eight. At a later age, they can then start operating their savings account.


The essential factor behind running these accounts is that they are an avenue through which children get to learn the importance of saving, hopefully cultivating this practice into a habit as they grow older. Also, the accounts only require a start-up capital of less than one sterling pound. Some parents also allow their children to withdraw their savings whenever they feel like, but this is at an advanced and rare level of parenting.


Junior Cash ISAs

Your child is also allowed to possess a Junior ISA if they are below the age of eighteen years and live comfortably in the United Kingdom. A Junior Cash ISA may appear complicated to understand, but it bears close similarities to a regular savings account. The only difference is that it has tax-free interest and the money is not available for children until they are of age – eighteen years.

Cash ISAs are a proven savings option in Europe. Why? You are not required to pay any amount in the tax category based on interest earned. At this point, it’s critical to mention that although a parent or guardian is required to open the savings account, the money deposited solely belongs to the child. However, the child may only withdraw any amount once he or she has attained the age of eighteen.


Lastly, the minimum amount required for junior savings accounts is 4080 sterling pounds for the tax year 2016-2017. When the child in question is between the ages of 16 and 18 years old, they can decide on adult cash ISA and eventually save up to over 15000 in a year.



The constantly changing financial environment in Europe means that parents have to invest in their children’s future at an early age. In so doing, they ensure stability and cater for uncharacterized emergencies that may emerge in future.


Given the increased financial challenges that arise from the drastic economic conditions, do you think that children should start saving at an early age? If so, what are the challenges hindering this practice?

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