How to Gift Your 18-Year-Old £50,000
Many parents dream of giving their child a financial head start -- whether it’s for university, a house deposit, or launching into adulthood with confidence. The good news? You don’t need to be rich to make it happen. Just consistent and strategic.
When most people think about saving for their children, they picture a basic savings account or a cash Junior ISA. While these are safe, they often generate minimal returns and may not keep pace with inflation.
A smarter option is to invest in a Junior Stocks & Shares ISA.
Here’s how it can work:
Invest £112 per month (the current Child Benefit amount for your first child)
Start at birth and invest until age 18
Target a 7.5% annual return, based on long-term market averages
The result? A pot worth around £50,000 by the time they turn 18
That’s the power of compounding
By investing in a Junior ISA, any growth is tax-free, and the money is locked away until the child turns 18 -- making it ideal for long-term planning.
Yes, investing involves risk and markets can fluctuate. But over an 18-year period, stock market investments have historically outperformed cash, often by a significant margin.
So instead of letting that £112 sit idle in a low-interest account, consider putting it to work. With a long-term approach, you can turn regular Child Benefit payments into a life-changing financial gift.
Start early. Stay invested. Set them up for success.
*The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
