Last checked: 27 September 2026
Decide what the money is for
A near-term school expense and a fund intended for adulthood are different goals. The timescale affects whether accessible cash or long-term investing is more appropriate.
Junior ISAs
A Junior ISA is a tax-free account for an eligible child. For 2026/27, the Junior ISA subscription limit is £9,000. Money in the account belongs to the child and is generally locked away until age 18.
Cash or investments?
Cash avoids market risk but rates can change and inflation can reduce purchasing power. Investments have greater uncertainty and can fall in value, but may be considered for longer horizons where that risk is acceptable.
Keep your own resilience in view
Saving for a child is valuable, but it can be sensible to maintain your own emergency buffer and address expensive or priority debt rather than leaving the household financially fragile.