Saving For Your Children: A Guide For Women Building Financial Futures

In today’s modern world, women juggle an increasing number of roles, from being a parent, caregivers, building a career and supporting their partners, all the while thinking ahead to the kind of future they want for their children. One of the most powerful gifts we can give them is a sense of financial security and the freedom to pursue their dreams.

Whether you’re raising young children, supporting teens, or already looking toward university and beyond, taking steps to save and invest now can create a solid foundation for key milestones, be it education, first homes, their own children and even their retirement.

Here, Finura Financial Planner, Lydia Richmond, takes you through how to get started:

Junior ISAs (JISAs)

Junior Individual Savings Accounts offer a highly tax-efficient way to save for a child’s future, with an annual allowance of up to £9,000. Parents and guardians can choose between a cash JISA – providing lower-risk, stable returns – or a stocks and shares JISA, which carries more risk but the potential for greater long-term growth. Either route can form a strong foundation for future financial security.

The Power of Compounding

When it comes to investing for children, time is one of the most valuable assets. Starting early allows even modest regular contributions to grow substantially over 18 years, thanks to the effects of compounding. Whether through interest or investment returns, small amounts can accumulate into a meaningful financial head start.

Pension Contributions for Children

Though it may seem premature, contributing to a pension for a child can be remarkably effective. With tax relief available on contributions up to £2,880 per year (topped up to £3,600), these early investments have decades to grow, potentially creating a significant retirement pot with minimal outlay.

Using Trusts for Greater Control

For those seeking more control over how and when a child accesses funds, setting up a trust may be appropriate. Trusts can offer flexibility and protection, allowing assets to be managed according to specific wishes. However, they are complex and come with legal and tax implications, so professional advice is essential.

Building Financial Literacy

While financial products play a vital role, teaching children about money is equally important. Encouraging good habits around budgeting, saving, and investing can empower them to manage their finances confidently as they grow. Long-term financial wellbeing starts with knowledge and responsibility.

Why it Matters

Investing in your child’s future is about more than money – it’s about creating choices, freedom, and resilience. From avoiding student loans to supporting a career change or starting a business, early financial planning can be the springboard that makes a lasting difference.

It’s never too early (or too late) to take that first step. If you’re thinking about how best to plan for your child’s future, please contact us here.

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Date written: 22^nd May 2025

Approved by Evolution Wealth Network Ltd on 22/05/2025.