Planning For
Your Children

At KWM we believe it’s never too early to start learning about money and how it works. Regular saving from a young age is a great thing to encourage. It helps build confidence and money management skills right from the start.

You’ll be helping your child create their own future, when the time comes to leave home.

By the time your child reaches 18, this could mean that they have a substantial fund to assist with university life or a generous pot building for their first house deposit.

Junior ISAs, also known as JISAs, are a great way to save or invest money for your children’s future.

Like all ISAs, you won’t pay Capital Gains Tax or Income Tax on them. There are 2 types of JISA; a Junior Cash ISA and a Junior Stocks and Shares ISA. Opening a Junior Stocks and Shares ISA while your children are still young means they’ll be benefiting from compound interest for even longer.

The effect of compounding over a long time can be significant as it generates income, which can then be reinvested to magnify your returns on interest over time. Perhaps better known as ‘interest on interest’.  At KWM, we often refer to this as ‘the magic of financial planning’.

If you’re the parent or legal guardian of a child under 18, you can open a Junior ISA for them. Any parent or legal guardian can open a Junior ISA for a child under 18 years old, and anyone can add money to their account, including grandparents, friends, and relatives.  The only exception to this is if your child already has a Child Trust Fund.

Beyond JISAs, the concepts and appropriateness of using gifts and trusts* are best understood in the context of your own personal circumstances. If you would like to understand more about how they can help with your own estate planning needs, please do not hesitate to contact us.

The value of investments will be directly linked to the performance of selected funds and these can fall as well as rise. You may get back less than the amount initially invested.

The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is dependent on individual circumstances.

*Trusts are not regulated by the Financial Conduct Authority.

Please note that a stocks and shares JISA does not provide the security of capital associated with a Cash JISA. St. James’s Place do not offer a Cash JISA.

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