Wealthify calls on parents to start investing now towards their kids’ futures or prepare for an ‘awkward money talk’ later

Wealthify, the online investment service, today launches its Junior Stocks and Shares ISA. Wealthify’s Junior ISA can be opened in less than 10 minutes with just £1, giving parents a hassle-free way to start investing for their children as soon as they’re born. The funds can only be accessed by the child when they turn 18, making it a great way to build up a nest egg for their future. 

With parents contributing on average £18,000¹ towards house deposits for their offspring, as well as up to £5,000 towards university fees per child, UK families should start preparing early for the almost inevitable future appeals for help with these major life expenses.

 Designed to be quick and easy to set up, a Wealthify Junior ISA requires no minimum investment or investing experience. Parents simply choose how much they want to invest regularly via Direct Debit and a level of risk, from cautious to adventurous. Wealthify’s experts manage the investments on the child’s behalf until their 18^th birthday, when the account is transferred to them. The money deposited into a Junior ISA, and any earnings made on the investments, belongs to the child and can never be accessed by the parent or guardian.

Michelle Pearce-Burke, CIO and co-founder of Wealthify said: “There’s an increasing expectation on parents to help their kids financially when they reach adulthood. With the cost of higher education and property set to continue rising, parents who plan to help their children with these major life expenses will need to start thinking sooner rather than later where the money will come from. Ignoring the issue now could result in an awkward money conversation between parent and child down the line, with parents having to say: ‘sorry, we can’t help’ or resorting to raiding their own investments or retirement savings.

“Alternatively, a new parent opening a Junior Stocks & Shares ISA today and paying in just £30 a month should have built up a nest egg of around £10k by the time their child is 18. If the child keeps investing until they’re 30 – the average age² of a first-time buyer – they could have almost £25k. If parents can afford £50 per month, it could grow to almost £40K by the time the child reaches 30. With the average UK house deposit at around £33k and as many as 1 in 4 UK house purchases relying on a parental contribution, taking the simple decision to start a Junior ISA today could make all the difference to your children’s futures.”

“A key advantage of a Junior ISA over standard savings – beyond the tax-efficient savings benefits – is that the parent can never dip into the money to cover things like day-to-day expenses, no matter how tempting³ it may be. The child’s pot of money is ringfenced, giving it a better chance to grow more quickly. 

“Our five investment styles: cautious, tentative, confident, ambitious, and adventurous, make choosing how to invest easy, even for beginners, and if you’d prefer to put your money into socially-responsible investments, it’s a simple case of flipping a switch.

“Following the hugely successful launch of our ethical portfolios in August 2018, we’re delighted to add another string to our bow with our new Junior Stocks and Shares ISA.  This new development is in response to considerable demand from existing Wealthify customers, with one in five declaring an interest in Junior Stocks and Shares ISAs and wanting to save or invest for their children’s futures.”