In an era where climate change and social justice are at the forefront of the public, many parents are increasingly turning to ethical investing as a way of aligning their financial practices with their values. A Junior Individual Savings Account (Junior ISA) offers a unique opportunity to contribute to socially responsible funds while securing a child’s financial future.

A Junior ISA is not just a financial tool; it can be a vehicle for change. Ethical investing within a Junior ISA allows parents and guardians to invest in funds that support environmental sustainability, social equity, and corporate governance. By choosing where their money is invested, they can potentially make a small impact on the world their children inherit. 

Understanding Ethical Investments

Ethical investment options vary widely from provider to provider.  However ethical investments typically include funds that support green technologies, renewable energy projects, and companies with strong human rights records. The fundamental tenet that underpins ethical investments is that they not only offer a good return but also contribute positively to society.

For those new to ethical investing, it involves selecting funds managed according to Environmental, Social, and Governance (ESG) principles. ESG funds might invest in companies that are leaders in reducing carbon emissions, are fair employers, or are involved in community development.

Why Choose a Junior ISA for Ethical Investing?

An Investment Junior ISA offers tax-free savings up to a maximum of £9,000 per year, and the money is invested in stocks and shares. Choosing an ethical fund with the Children’s ISA means that returns are not only financially rewarding but you are safe in the knowledge that the money you are investing on behalf of your child is being used ethically.  This aligns with a growing consciousness among British parents about the impact of their money.

The Long-Term Benefits of Ethical Investing

Investing ethically through a Junior ISA can teach children valuable lessons about money and morality. It shows them that financial decisions can reflect personal values and have real-world implications. Ethical funds often focus on long-term gains rather than short-term profits, mirroring the long-term nature of investing generally. 

Getting Started with Ethical Investments in a Junior ISA

Starting is simpler than it might seem. It involves setting up a Junior ISA account (and opening an account with the Children’s ISA is as easy as ABC), choosing an ethical fund that aligns with your values, and making regular contributions. And, like any investment, It’s important to review performance regularly.

The Future of Saving for Children

As society moves towards more sustainable and equitable practices, the popularity of ethical investing is likely to grow. For parents who wish to invest in a Junior ISA with the Children’s ISA,  an ethical fund is our ethical investing option, you can then choose your investment profile — defensive, balanced or adventurous. 

Ethical investing through a Junior ISA is an excellent way for parents to ensure that their children’s financial future is not only secure but also intertwined with the health and welfare of the planet. It represents a profound shift in how we think about money and its potential to do good. By embracing ethical investments with the Children’s ISA, parents can make a difference as well as provide their children with a nest egg for the future.