"What are the best ways to financially support or invest for my children or grandchildren?"
One of the most rewarding conversations we have with Money Guide clients is about planning for their children's future. Whether you're a new parent, have teenagers, or have recently become grandparents, it's never too early—or too late—to think about building financial security for the next generation.
Below are some of the most commonly asked questions regarding family financial planning during Money Guide meetings.
“How can I set up my children financially?”
The good news is that you don’t need to be wealthy to give your child a strong financial start. It’s usually more about creating good habits and having a clear plan.
We generally encourage families to think about their finances in this order:
- Build an emergency fund with around three months’ worth of essential expenses.
- Make sure you’re contributing to your pension. Looking after your future is one of the best gifts you can give your children.
- Start investing regularly for your child through a tax-efficient account, such as a Junior ISA (JISA).
By putting your own financial foundations in place first, you’re better positioned to support your children over the long term.
“Should I save for my child or invest for them?”
It depends on when they’ll need the money. If you’re saving for something in the next few years, such as school trips or a first car, cash savings may be appropriate.
However, if your child is still young and you’re investing for goals that are 10, 15 or even 18 years away, investing has historically offered greater potential for long-term growth than keeping everything in cash.
Of course, investments can go down as well as up, so it’s important to invest in a way that’s suitable for your circumstances and attitude to risk.
“How do I invest for my child in the UK?”
For many families, the simplest place to start is a Stocks & Shares Junior ISA.
A JISA allows you to invest money on behalf of your child, with any investment growth and income being free from UK Income Tax and Capital Gains Tax. The account belongs to your child, and they’ll gain control of it when they turn 18.
Many parents choose to invest in diversified funds rather than individual company shares, helping to spread risk across thousands of businesses around the world.
If you’ve never invested before, remember that regular monthly contributions often matter more than trying to find the “perfect” investment.
“How much should I invest each month?”
This question often surprises people because our answer isn’t a specific number.
The best amount is the one you can comfortably afford without putting pressure on your own finances. Whether it’s £25, £50 or £100 each month, consistency usually has a bigger impact than making occasional large contributions. Many families increase their monthly investment whenever they receive a pay rise or reduce childcare costs.
“Should I prioritise my child’s savings over my pension?”
In almost every case, no. It can feel counterintuitive, but your retirement should remain a priority.
Your children may be able to access student finance or mortgages in the future, but there are very few options for funding retirement if you’ve fallen behind on pension savings.
We often say to clients that securing your own financial future ultimately helps your children too.
Of course every circumstance is unique so discussing your own personal situation with a Money Guide is the best way to get clear information, signposting and guidance relevant to your individual situation.
“What does a secure family financial plan look like?”
A healthy financial plan often includes:
- Three months’ worth of emergency savings
- Regular pension contributions
- A Stocks & Shares Junior ISA for each child
- Appropriate insurance to protect your family
- A will and lasting powers of attorney where appropriate
These building blocks create resilience for your household while giving your children a stronger financial future.
“What if my child is already a teenager? Can I still help them financially?”
Starting today is almost always better waiting another year.
Even five or six years of regular investing can make a meaningful difference, particularly if family members such as grandparents than also contribute.
Remember, it’s never simply about the amount you invest. It’s also about helping your child develop healthy financial habits they’ll carry into adulthood.
“Can grandparents invest for grandchildren?”
Absolutely. Many grandparents choose to contribute to a Junior ISA instead of buying more toys or giving cash gifts.
It’s a practical way of helping to build a future deposit for a home, support university costs or simply provide financial security when the child becomes an adult.
Grandparents can usually make regular or one-off contributions, provided the annual Junior ISA allowance isn’t exceeded.
“What’s the biggest mistake parents make when investing for their children?”
Parents often think they’ll start investing once they’ve paid off more of the mortgage, earn a little more or have more spare cash.
The reality is that time is one of the most valuable assets when investing.
Starting with a modest monthly amount today can often achieve more than waiting several years to invest a larger amount.
Every family’s circumstances are different, but having a clear plan can help you feel more confident about your child’s financial future. If you’re unsure where to begin, speaking with a qualified financial adviser or money guide can help you understand the options available and decide what works best for your family’s goals.
The above is for information only and is not intended as financial advice. Our Money Guides are not regulated financial advisers, but they can provide information, signposting and guidance. Should you require formal financial advice, you should speak to a regulated financial adviser.
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Guidance, information, signposting and considering your options in relation to one or more of your financial issues.
- Retirement planning
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- Savings & investing for the medium to long term
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- Student debt
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The initial half-hour meeting with your Money Guide costs just £25. Further Money Guide time is chargeable at £96 for half an hour and £180 for an hour. All prices are inclusive of VAT.
By video or telephone meeting.
Potentially, if there is a quick and straightforward answer or signposting, this can be done in the first meeting. Usually, further research and a follow up meeting is necessary, which is chargeable.
No, we are not Regulated Financial Advisers and legally we are unable to give specific advice or personal recommendations. We can refer you to an Independent Financial Adviser if this is appropriate.
Although our Money Guiders are not Regulated Financial Advisers, they all have extensive experience in the personal finance arena.
This includes planning for retirement, defined benefit & defined contribution pension options, savings & investments and many other areas.
