Invaluable lessons teach youngsters the importance of saving

Financial literacy is not a skill we are born with. Learning how to manage money effectively requires acquiring a few important life lessons that parents can pass on to their children from a relatively young age, according to Iain Cairns of Argyll Financial Services.

Junior Individual Savings Accounts (JISAs) are a good way for children to learn about the benefits of saving money for the future.

The advantage of JISAs is that they are tax free and, once the account has been opened by the parent or guardian, anyone can make contributions, including grandparents, friends and family. The savings limit for the 2018-19 tax year is £4,260. Children gain control of their JISA at age 16, but the money cannot be withdrawn until they are 18. The account then automatically rolls over into an adult ISA.

The value of investments can go down as well as up. Past performance may not necessarily be repeated.