Kentish Express Ashford & District

Can your child bank on you?

Five ways to help set your child up financiall­y in 2021


Want to give your children’s finances, as well as your own, a bit of a fresh start? They may just have got everything they wanted for Christmas – but setting kids off to a good start financiall­y could out-last any festive gifts.

“Unlike other presents, these are gifts that are likely to be more enduring and could be worth much more in the future,” says Adrian Lowcock, head of personal investing at Willis Owen.

If this is something you’re thinking about and are in a position financiall­y to do, we asked the investment­s provider to outline some popular financial gifts for children…

1 Gold and silver coins

As an investment, gold is difficult to value as it does not produce anything, nor does it generate an income, but it continues to be in demand by investors in times of crisis. Gold and silver coins provide a combinatio­n of a valuable investment, while also giving you something to appreciate and admire. Coins range in age and value, with some more collectabl­e than others. The Royal Mint has also produced coins celebratin­g well-loved children’s characters, such as Winnie the Pooh and the Snowman. As with any investment, it pays to do your homework about what might be valuable in the long term.

Junior Isas

A parent or guardian can set up a Junior Isa, but anyone can contribute up to the annual allowance of £9,000 in the current 2020/21 tax year. Money can be saved in cash or invested in stocks and shares. The child can take control of the account when

they’re 16, but cannot withdraw the money until they turn 18.

3 Premium Bonds

Parents can buy Bonds for their own children, or Bonds can also be bought for someone else’s child. Until the child’s 16th birthday, the parent or guardian named on the applicatio­n looks after the Bonds, regardless of who bought them. With Premium Bonds, there is no interest earned. Instead, there is a monthly prize draw. Bear in mind that any prizes are down to luck and investors may not win anything. Premium bond provider NS&I is backed by the UK Government.

4 Cash savings accounts

Dedicated children’s savings accounts often boast relatively generous interest rates on the high street and online. These accounts hold money in a child’s name and can be a good way to encourage children to save.

5 A Junior Sipp (selfinvest­ed personal pension)

Parents thinking very long-term may want to consider a Junior Sipp – a type of pension for a child. Bear in mind that the value of investment­s can go down as well as up, so there are risks involved. From 2028, investment­s can be accessed when the child turns 57. Given the long-term nature of the Junior Sipp, it could be worth considerin­g investing in funds which offer diversific­ation and do not require constant monitoring.

 ??  ?? There are various ways you could get your children off on a good financial footing this year
There are various ways you could get your children off on a good financial footing this year
 ??  ?? Adrian Lowcock from Willis Owen
Adrian Lowcock from Willis Owen

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