How Should You Save for Your Child's Future?
By Georgia Holmes
Discover how to build savings for your child's future, compare Junior ISAs and children's savings accounts, and understand how investing could help their money grow over the long term.
Every parent wants to give their child the best possible start in life. Whether you want to help pay for university, support them through an apprenticeship or give them a deposit for their first home, saving early can make a real difference.
But what is the best way to save for your child's future? Should you put money into a savings account, open a Junior ISA or invest for potentially higher long-term returns?
The right approach depends on when your child will need the money, how much risk you are comfortable taking and whether you want them to have full control of the savings when they turn 18.
Here is what you need to know about saving and investing for your child's future in the UK.
Why should you start saving for your child early?
Starting early gives you more time to build a savings pot through regular contributions. Even relatively small amounts can add up over many years.
For example, saving £50 a month for 18 years would mean contributing £10,800 of your own money, before any interest or investment growth. If you can afford to save more, the total could be considerably higher.
Starting early also gives you time to adjust your contributions as your circumstances change. You might begin with a small monthly payment and increase it when your income rises or childcare costs fall.
However, saving for your child should fit alongside your own financial priorities. It is worth considering your emergency savings, expensive debts and pension contributions before committing to an amount you may struggle to maintain.
What is the best way to save for your child's future?
There is no single best account for every family. The main options offer different levels of access, control, tax advantages and potential growth.
Open a Junior ISA
A Junior Individual Savings Account, or Junior ISA, is a long-term, tax-efficient account for eligible children living in the UK. There are two types:
Junior Cash ISA: Your money earns interest, and the interest is tax-free.
Junior Stocks and Shares ISA: Your money is invested, giving it the potential to grow over time, although its value can fall as well as rise.
For the 2026/27 tax year, you can pay up to £9,000 in total into a child's Junior ISA. This allowance covers contributions to both types of Junior ISA combined.
Parents or guardians with parental responsibility can open and manage the account. Other people, including grandparents and relatives, can contribute too.
One important consideration is ownership. The money belongs to your child, and they can take control of the account at 16. They generally cannot withdraw the money until they turn 18, when they can use it as they choose.
A Junior ISA can be useful if you want to build a dedicated pot for your child and are comfortable with them gaining access to it as a young adult.
Use a children's savings account
A children's savings account can be a straightforward way to put money aside without…