How saving £70 a month could set your child up with a £21,000 nest egg when they turn 18
PARENTS who start saving when their babies are born could give their child a nest egg worth thousands of pounds.
Putting money into a junior Isa can help you boost your savings - with just £70 a month turning into £21,000.
A junior ISA is a tax-free savings account for under 18s where you can save up to £9,000 a year.
As the tax year ends on April 5, you've got just over a month to make the most of this year's tax-free allowance.
If you saved £70 a month over 18 years, your child could get a lump sum of £21,000 when they hit the age limit.
That's assuming a growth rate of 5% and that you open the account when your child is born.
The amount you'll get depends on how long you save and how much you put in each month.
For example, if you saved the full £9,000 a year you could have £228,919 after 18 years.
But that would involve stashing £750 a month into the Isa, which isn't realistic for many people.
Anyone can pay money into a Junior ISA, but the total amount paid in cannot go over £9,000 in the 2021 to 2022 tax year.
The money belongs to your child and cannot be withdrawn until they turn 18.
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