After years of carefully saving into a Junior ISA (JISA) for your child, the thought of handing them control of the account may feel a little daunting.
Will they appreciate the effort you’ve made to build their savings and continue growing the fund for something meaningful, such as university or their first home? Or could they spend it all as soon as they’re able to access it?
While you can’t ultimately control how your child uses their money when they become and adult, preparing your child for their Junior ISA could help them make more informed decisions about their savings and investments.
Keep reading to learn how Junior ISAs work and discover four practical steps you can take to help your child prepare for taking control of their JISA and make the most of their money.
How Junior ISAs work and why they could help invest in your child’s future
A Junior ISA (JISA) is a tax-efficient savings and investment account that a parent or legal guardian can open for a child under the age of 18 who lives in the UK.
There are two main types of Junior ISA:
- Cash Junior ISAs – These work in a similar way to a standard savings account, but you won’t pay tax on any interest earned.
- Stocks and Shares Junior ISAs – Money contributed to the account is invested, and any capital growth or dividends are free from tax.
In the 2026/27 tax year, you can contribute up to £9,000 to a Junior ISA.
Your child can take control of their Junior ISA when they turn 16, although they can’t withdraw money from the account until they reach the age of 18.
A JISA could be a powerful way to build a savings pot for your child. The tax-efficient nature of the account means their money can grow without tax on interest, capital gains or dividends, depending on the type of Junior ISA. With many years for their money to potentially benefit from compounding, a Junior ISA could also give your child a valuable financial head start in adulthood.
However, preparing your child for their Junior ISA before they take control of the account could be just as important as building the savings in the first place.
4 practical steps for preparing your child for their Junior ISA
If you’re concerned about handing over the reins of a carefully nurtured Junior ISA, here are four practical steps to consider taking before your child can access their account.
Talk to them about why you set up their Junior ISA
Explaining your intentions could help your child see their Junior ISA as more than simply a windfall.
Perhaps you imagined the money being used as a meaningful contribution towards university costs, a gap year, a first car, or a deposit on their first home. You may find that some of these goals are important to your child too.
If they have different ideas about how they would like to use the money, having an open conversation could still encourage them to think more carefully about their options.
When preparing your child for their Junior ISA, it can be helpful to focus on choices and possibilities rather than setting strict rules. This could help them feel trusted and capable of making their own decisions, making them more likely to engage thoughtfully with their savings.
Listen to how they want to use the money and plan together
When your child turns 18, their Junior ISA matures and they can access the money. As the account belongs to them, they’re free to decide how they want to use their savings.
Before this happens, try moving the conversation away from “my plans for you” and towards helping your child think about their own financial goals.
Once you’ve explained why you originally set up the Junior ISA, give your child the opportunity to share how they might want to use the money.
Try to resist the urge to immediately correct or disagree with their ideas. Instead, work together to explore their options and create a plan that considers achievable short, medium and long-term goals.
This could help your child understand how their Junior ISA could fit into their wider financial plans and encourage them to think beyond immediate spending.
Take a gradual approach to handling over control
Your child can take control of their Junior ISA when they turn 16, giving you two years to help prepare them before they’re able to withdraw any money.
This could be a useful opportunity to gradually introduce them to managing their savings and investments.
Show them the platform or app you use to manage the Junior ISA and explain what they have in their account, whether that includes cash, funds, shares or other investments.
You could also talk to them about the difference between saving and investing and explain how each can play a different role in their financial plans.
As they become more confident, you may want to encourage them to start making small, supervised financial decisions of their own. For example, if they have an income, they could decide how much they would like to save each month.
Taking a gradual approach to preparing your child for their Junior ISA could help build their confidence and understanding while reducing the risk of impulsive decisions when they eventually gain access to the money.
Demonstrate the value of leaving their Junior ISA untouched
When your child turns 18, it’s important they understand that they don’t necessarily need to spend their money straight away.
If their financial circumstances and goals allow, leaving some or all of their money invested could be an important option to consider.
Real-life examples can be a useful way to demonstrate the potential benefits of giving money more time to grow.
Try using an online compounding calculator, such as this one from Aviva, to show how their current balance could grow over time with a modest, assumed interest rate. Make sure they understand that investment returns and interest rates aren’t guaranteed.
You could then contrast this with a scenario where they withdraw a large lump sum as soon as they turn 18.
Seeing the potential difference could help your child understand the value of patience and encourage them to think carefully before making decisions about their money.
It could also inspire them to turn their Junior ISA into the beginning of a lifelong habit of saving and investing.
Get in touch
Preparing your child for their Junior ISA could help them feel more confident about managing their money when they eventually take control of the account.
While you can’t make financial decisions for them once the money becomes accessible, helping them understand their options, goals and the potential value of saving and investing could give them a stronger foundation for the future.
If you’d like to discuss your own financial plans or explore ways to invest for your child’s future, please get in touch.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
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