Are you losing money on your child's savings
Inflation is why the cost of everything seems to go up over time! For example, the same pair of children's shoes costing £10 in 1980 would cost £43.20 in 2019.
In the context of savings, this is like putting £50 under your mattress back in 1980; it would be able to buy only £12 worth of goodies in 2019 - bad, bad, bad!
The image above shows that inflation has averaged 1.06% in 2020 (however it was much higher in January pre-pandemic), therefore the interest earned on savings must exceed this to avoid devaluing our children's precious money saved. This is worth knowing in times of historically low interest rates (some NS&I savings accounts are paying 0.01%!)
This is why we need to ensure that we get a good return on our children's savings; to ensure the value of the money exceeds (or at least keeps up with!) inflation. Otherwise, in the future, the savings pot will be able to buy less than today.