Cash advice

There are now more ways than ever to gift money to the children in your life other than just cash in hand. Here, the Financially Fabulous money team show you how to gift money this Christmas...

1 MAKE THEM ‘APPY

If you’d like to give the gift of money to spend right now, take a look at GoHenry (£2.99 a month, aimed at kids aged six to 18). It’s a prepaid card, so there’s no risk of overspending. The app allows whoever sets up the account to see where the money is being spent, and it’s a great way for children to learn about budgeting. GoHenry’s gift feature can send a link to other people, so they can put money on the account, too, and the child can send a ‘thank you’ back.

2 BUY BONDS

If you’re feeling lucky, you could buy NS&I Premium Bonds for your child or grandchildren, giving them a chance to enter a £1million jackpot draw every month, with as little as £25. You can buy Premium Bonds for children via nsandi.com, which is backed by the government. The child’s legal guardian will have control of the Bonds until they are 16, so make sure you get permission first.

3 GIVE KIDS A JISA

Junior ISAs are long-term savings accounts that parents and legal guardians can open for their children. There are two types: a cash JISA, which earns interest, or an investment JISA where the money is put to work on the stock market. Although the account is controlled by parents, anyone can pay into it, so you can invest in your grandkids’ future.

4 GO FOR COLLECTIBLES

If you’d prefer to buy something you hope will grow in value, think about investing in a first edition book or comic. Corgi, Matchbox or Funko toys are popular with collectors, so if you buy a limitededition one now, it could be valuable in years to come, as long as it’s kept in its original packaging. Figures linked to TV series, and limited-edition Lego, can grow in value over time, too. There are no guarantees though. To get an idea or what might be collectible, look at Miller’s Collectables Handbook & Price Guide 2019-2020 (Mitchell Beazley).

5 SET GOALS

If a child is saving for something specific, encourage them by setting up a dedicated savings account. Some easy-access kids’ accounts include HSBC MySavings, Santander 123 Mini Current Account and Nationwide Future Saver. See moneysupermarket.com for advice.