One thing that most parents hope is that their children will go one better than them. I’m confident that mine will manage to do so. There’s one easy win they can get under their belts for starters. Learning to drive.
Despite being old enough to learn for two decades, it has never appealed to me. This is mainly because I’m not brave enough to get behind a wheel.
There, I’ve admitted it. The idea of controlling a moving vehicle alongside others terrifies me. I’m even twitchy with driving in video games. My children, however, are fearless. I’m sure they’ll be champing at the bit to learn.
Driving lessons have become progressively more expensive. I don’t imagine that is going to change. With this in mind, it makes sense to start saving for lessons and first cars. Particularly if, like me, you have more than one child to save for.
Investing in a Junior ISA is a great way of putting money away for expenses like this. As well as offering many tax benefits (although these depend on your individual circumstances and may change over time), it can’t be withdrawn until your child turns 18.
True, this means that they may have to wait a year before learning to drive, but I don’t think this is a bad thing. They would be that much more mature. Plus if I can manage 20 years without driving, one is nothing.
Back to Junior ISAs and Orbis Access currently has an appealing option available. First of all, it is offering 12 months fee free.
This means that anything you put in during the first year will be invested without fund management fees for the entire life of the account, giving your child up to 18 years of savings. You can find out more about their Junior ISA Fee-Free offer here.
In addition to this existing offer, Orbis will match the first investment into every new Junior ISA opened before 30 April 2017, up to £100.
In today’s money, that’s around four lessons paid for already. Enough for a confident learner to master mirror, signal, manoeuvre and learning gears at the very least. They’ll do this for each new account so if you have more than one child, they can each benefit from their offer.
What’s more, there is no charge for opening an account and you can invest from as little as £1. As with any investment, the value can go down as well as up so you may end up with less than what you put in so your capital is at risk, but this strikes me as a worthwhile option for saving for the future.
If you are thinking about opening a Junior ISA, now is the time to act. The new tax year will soon be upon us so it makes sense to take advantage of the annual Junior ISA allowance during the current one.
If you were to put money away for something specific for your kids, what would you save for?
Disclosure: this post was produced in collaboration with Orbis Access and has been approved for issue in the United Kingdom by Orbis Access (UK) Limited which is authorised and regulated by the Financial Conduct Authority.