Pocket money can help children learn important life skills and become responsible about money and know how to manage it. You can teach your child about saving and encourage their self-discipline by helping them identify and work towards a savings goal.

Why open a Junior ISA?

This type of account is a tax efficient way to save for your child’s future. Once the person who has parental responsibility for a child has opened the account, anyone can contribute to it, up to an annual limit (£4,260 in this tax year). This means that the child can learn more about money management by saving some of their pocket money and watching it grow.

As soon as money is put into the account, it’s locked in until the child reaches the age of 18, at which point it becomes theirs, and they can do what they like with it.

In a strange quirk of the tax rules, children aged 16 and 17 can claim their adult Cash ISA limit of £20,000 plus their Junior ISA allowance of £4,260.


The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.

Tax treatment depends on individual circumstances. Tax treatment, rates and allowance are subject to change.

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