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The Power of Junior ISAs

Helping the Next Generation Climb the Property Ladder:

With the current cost of living crisis, the dream of owning a home for most young people is slipping away. With soaring living costs and inflation rates on the rise, saving for university fees or a first home can feel impossible. However, there are steps we can take as parents and guardians to give our children or grandchildren a head start towards a more secure financial future. Willday Wealth Management are now offering a Junior Individual Savings Account (Junior ISA)! In this blog, we will explore the impact of rising living prices and inflation on saving for university fees and homeownership and discover how Junior ISAs can play a crucial role in supporting the next generation’s financial goals.

The Impact of Rising Living Prices and Inflation:

Tuition for higher education has been rising steadily due to the ongoing growth of inflation and the operational costs of universities. As a result, families must take on the difficult task of increasing their savings to keep up with these rising expenses. For students attending universities far from home, inflation is having a massive impact on necessary living expenses. This reduces the amount of money available for tuition fees, forcing students to take out more expensive student loans, increasing the debt that themselves and their families must repay. Another problem is the rising difficulty for the next generation to get on the property ladder. One major obstacle is the escalating property prices, which outpace wage growth, making it increasingly challenging for young adults to save up for a substantial deposit. Alongside the cost of living and education expenses, it can leave very little room for saving. As a solution, investing in a Junior ISA for children or grandchildren can be a strategic approach to alleviate this problem! By starting early and taking advantage of tax-efficient savings, a Junior ISA can provide a significant financial boost to the next generation when they reach adulthood. This early investment could serve as a valuable deposit for their future home, helping them overcome the hurdles of the inflated property market and offering them a stronger foundation to achieve homeownership.

But what is a Junior ISA?

A Junior Individual Savings Account (Junior ISA) is a type of tax-efficient savings account available in the United Kingdom. It is designed specifically for children under the age of 18 and allows parents, guardians, or other family members to save money on behalf of a child for their future financial needs. This money can be earmarked for a house, university or even a wedding. Here are some of the main features of a Junior ISA.

  1. Tax-efficient savings: Any interest, dividends, or capital gains earned within the Junior ISA are not subject to income tax or capital gains tax. This makes it an attractive option for long-term savings as the money can grow without being diminished by taxes.
  2. Long-term planning: Your child cannot access the funds until their 18th birthday, which allows you to invest £9,000.00 a year, giving the Junior ISA the very best opportunity to grow.
  3. Parental responsibility: Parents or guardians can open and manage a Junior ISA on behalf of the child until they reach 18. Once the child turns 18, they have the option to take over the management of the account.

By leveraging the benefits of Junior ISAs, parents and guardians can empower the next generation to pursue their dreams of higher education and homeownership – so start now, make informed financial decisions, and lay the foundation for a brighter financial future. With dedication and planning, we can help our children and grandchildren climb the property ladder and achieve their goals with confidence.

Why choose Willday Wealth Management?

Opening an account with us is completely FREE! By choosing Willday to open a Junior ISA, you can rest assured that your child’s financial future will be in the hands of a committed team. We will work diligently to help them achieve their goals, offering a head start towards a secure and prosperous future. As a company we are trying to look at our own carbon footprint. Paper is a large part of our business, and we make sure that for every piece of paper we use, more trees are being planted. Since 1972, The Woodland Trust has planted over 55m trees and counting. For each opened Junior ISA we will plant four trees to make sure our children have a greener future. Why not encourage family to set up a Junior ISA and Willday Wealth Management will contribute £50 into your child’s Junior ISA. We have also teamed up with Willsow, a children’s plantable book about a carrot too big for his bed.

Once a Junior ISA is opened, we will send this plantable children’s book in the post. Open a Junior ISA with us today!

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