5 reasons why saving money for children is important
Opening a child savings account is a great idea because:
1. It gives children a financial starting point in life in order to have options to go to university, start saving for their own home, learn to drive, travel or invest.
2. It teaches children important financial lessons including making them more money aware and encouraging them to develop good savings habits as they grow up.
3. It provides a place where family and friends can save money together for the children that are important in their lives, including a place to deposit money received during birthdays, inheritances and other occasions. The Junior ISA allowance has increased to £9,000 this tax year (2020/2021) meaning that there is ample allowance for parents and families to save together.
4. Children have a long period of time to save money before adulthood (up to 18 years!), therefore just like with a pension, this is a great length of time to save even small amounts of money into something life changing!
5. The future is uncertain for our children due to the impact of the pandemic, rising house prices amongst many other issues, therefore a nest egg of any size and the financial lessons that have been learnt along the way, will give children a great start to their adult life.
Snowball is launching in 2021 and is dedicated to improving the financial futures of children through collaborative saving, stock market investing and financial education. If you are interested in being first to hear the latest Snowball updates and have early access to the platform, please sign up here.