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Being a parent is so challenging at times. Emotionally, physically and financially. From the day our daughter was born, back in March 2016, we started a savings fund for her. Each month, when Thomas gets paid, we put away a small fixed sum of money for Daisy. This just comes out automatically, and moves to a savings account, and is basically painless. We don’t miss the money, and it goes before we allocate our money to bills, savings and spends. It isn’t a vast sum but it soon adds up and Daisy is already into the early thousands with her savings, just from these small amounts. Recently I have been thinking about the long-term, and the best way to grow Daisy’s money, for her future, without having to increase the amount of money that we are saving. Today I want to talk to you about Junior ISAs, or JISAs, as they are often known, from Wealthsimple. I have been toying with the idea of opening one and think I’m ready to take the leap!
What is a JISA?
A JISA, a Junior ISA, is an individual savings account for children under the age of 18. Parents and legal guardians can set up a JISA after a child is born, and a child can even set one up at 16 if they choose. Family can pay into the account and depending on the type of JISA the money will grow. You can choose either a cash JISA, much like an ordinary savings account, with a guaranteed rate of interest, or you can choose a stocks & shares JISA. The value of this can fluctuate, and therefore this type of savings account is not risk-free. There is a chance, depending on the risk portfolio that you choose when setting up the stocks & shares JISA that the money can decrease, as well as increase. Find out more about JISAs now.
Why I want to set up a JISA with Wealthsimple
Everyone can pay in. For example, Daisy’s aunt gives her a small, but much appreciated, sum of money each month. At present we have this going into a savings account that Daisy cannot access until 18. This is a great way for Daisy’s aunt to know that the money won’t be touched. However, by moving this over to a JISA it will grow at a bigger rate, even if we choose a cash JISA.
They are simple to open. In just 10 minutes you can complete the process online with Wealthsimple. I went through the process myself recently, to allow me to write this post, and I was really pleased with how simple it was. I had to provide basic information and then I was able to work out what type of risk portfolio was right for me. It probably won’t come as a surprise to my readers that I was considered a conservative investor who doesn’t like much risk. I want the money that we are saving for Daisy to benefit her in the future, even if that means a smaller amount compared to some of the higher risk stocks & shares options. Now I just need to start paying in!
The money is protected. It isn’t possible to just dip into a JISA. This means that the money saved for Daisy is going to be kept safe. Also, if other people want to pay in then they can be sure that Daisy’s money won’t be accessed by us and will be growing for her future adulthood.
Once Daisy is 18 she will be able to have full access, and control, of the money in her JISA, so, for this reason, we aren’t going to place all of her savings in a JISA. When I turned 18 I was rubbish with money and would possibly have frittered a huge windfall away. Obviously, I’m hoping that Daisy will be better educated than I was but I think spreading the risk of her frittering it away isn’t a bad idea!
Why am I looking at opening a JISA with Wealthsimple?
There is no minimum amount required. None. If we want to put £20 a month away for Daisy we are able to do so. Also, we can start an account for next to nothing too. This is great if you’re thinking of setting up a JISA but don’t have a lot of spare money.
First £5,000 managed free for a year. This is a great way to see what a JISA can do for your child’s investments, without being charged big fees.
They have an app. You can use this to see your accounts online. No need to ring up, or even go on your computer, to see what is going on with your finances.
They use smart technology. Expert human advice is partnered with smart technology to give great advice and help to make the most of my money.
No tax to pay. Wahey!
Realistic maximum deposit. I think £4,260 per tax year is realistic enough not to put too much unnecessary pressure on me to hit the savings limit but to allow me to save enough money to hopefully have a fantastic nest egg for Daisy’s future.
Like the sound of a JISA?
Thanks to the great people at Wealthsimple I have a great offer for my readers. If you sign up now, for free, the first £5,000 that you invest will be managed free for the first year. This is a fantastic incentive and a great way to get started with a JISA without losing money to fees. Do remember that the value of a Junior Stocks and Shares ISA can go up as well as down.
Wealthsimple have 3 risk portfolios if you want to invest in a JISA, to help you find the right account for your preferred risk appetite.
What are you waiting for? Sign up now! Click below to get started:
This is a collaborative post in conjunction with Wealth Simple. Please be advised that investments can go up as well as down. I am not qualified to give financial advice and would suggest that you speak to a qualified financial advisor before you open an investment account. Capital at risk.