1. Home
  2. >
  3. Blog
  4. >
  5. The Best Way to Grow Savings for Kids

The Best Way to Grow Savings for Kids

With 2020 safely behind us, many parents and grandparents are now turning their attention to growing their children’s savings in order to provide for their future. Whether you want to help them with their university fees, or set them on the right path to buying their first home, there are various ways that you can make the most of their saving pots.

Junior Stocks and Shares ISA

It sounds obvious, but investing your children’s savings on the stock market is a great long term strategy for saving for their future. ISAs help protect their income from any tax erosion and a Junior ISA is not accessible until the child turns 18 which removes the temptation to access the savings early.

For long term savings it is best to avoid cash ISAs as inflation will slowly gnaw away at the value of the cash held within. Of course you can expect some volatility on the stock market, however this should all level out over the long term and if you have chosen your investments with care, you should start to see some good returns.

Settle in for The Long Term

As mentioned above, the market can be volatile, and investing should be done over the long term. It is recommended that investments should be left for a minimum of five years in order to see any real gains. If you need access to the funds sooner, you may want to consider an alternative to investing.


It may be tempting to put all your investment cash behind a company that you know and trust, however, diversification is key to mitigating your exposure to risk and it is therefore recommended that you ensure you have a globally diverse portfolio.

Check Performance

If you are more comfortable investing through a ready made fund, then it is advisable to check the performance of the fund you are considering before you commit your cash. Where possible go beyond the last five years in order to establish the funds performance over the long term.

Read Next

Latest News

Newsletter Sign-up

Get access to free financial guides and a monthly curation of the best personal finance content in the UK.

We will not spam you.


By entering your email address you confirm you are happy with our privacy policy.