Let’s look to the future and imagine, your child is now sixteen. At this age, it’s clear to see their interests, character, likes and dislikes, some which may be a passing phase, but others that will stay with them for a lifetime. The mid-teens are a time where, through obtaining GCSE results and selecting A-level choices, they are deciding to make the necessary steps towards their future and starting to find their way in life. 

Whether they are looking towards university, thinking about learning how to drive or planning a future worldwide trip with their friends and, depending on how much has been invested, the money you have been wisely saving over the years in their Junior ISA should be starting to look like a substantial nest egg. 

We’re working on the basis that you opened a Junior ISA account when your child was born, so that’s 16 years of savings accumulated. Let’s break that down, if you and family members put £100 a month into your child’s ISA, they (based on projected figures) could at 16, have savings worth over £29,000*.  An amount like this would set them well on their way into adulthood, whatever path they choose to take. The age of 16 is the start of many firsts, you may decide to tell them about their Junior ISA at this age, if not before, for future planning purposes and to enable them to make their own smart investment choices.

Your child then gains full control and access to their Junior ISA funds from their eighteenth birthday. This all will be signed off with you, following full security checks so we can ensure a smooth transition. To complete this we will email you a maturities form three months before the child’s eighteenth birthday, for you and your teen to fill out together. Once they have been granted full access they can choose to either keep the account open as an ISA, withdraw the funds and close the account permanently. There is also the option of withdrawing some of the funds and keeping the account open as an ISA (with a minimum of balance of £100). At the Children’s ISA we are aware finances can be tricky and somewhat overwhelming to the best of us, so our friendly team is happy to talk your teenager through their options, on their terms. 

If you are thinking about starting a Junior ISA or would like to discuss your account over the phone, please feel free to contact us. We’ve made it easy to check in with us online, but we are only one call away in our Manchester head office.

* Based on an assumed 5% net growth per annum