Written by Beth Tait, Personal Finance Champion at OneFamily, a trusted partner of Money Ready.
Most of us can think of a money lesson we wish we’d learned sooner. Maybe it was understanding how interest works, getting to grips with budgeting, or realising that saving little and often really does add up over time. Whatever it was, chances are we learned through experience rather than being taught.
The reality is that many people are making important financial decisions without ever feeling fully prepared for them. Money Ready’s Cost of Not Knowing research found that 35% of people feel they learned financial skills too late, while almost three-quarters (74%) believe schools don’t provide enough financial education.
When so many adults feel they were left to learn about money through trial and error, it’s worth asking how we can help the next generation feel better prepared.
Make money part of everyday conversation
Talking about money from an early age can help children feel more comfortable with the subject. Showing them how savings and investments can grow, explaining where contributions come from and discussing future goals can help bring money to life in a way that’s relevant to them.
These conversations don’t need to be formal. They can happen while doing the weekly shop, planning a family holiday or deciding what to do with birthday money.
As children grow up, those discussions can become more detailed, covering everything from wants and needs to the importance of planning ahead. This can really help them develop confidence and a healthy relationship with money.
A Junior ISA gives those conversations a purpose
A Junior ISA (Individual Savings Account) is on option parents might come across when looking at ways to save for their child’s future.
Parents or guardians manage the account until the child turns 18, when the money becomes theirs to access and manage. Families can currently save up to £9,000 each tax year, and any interest or investment growth is free from UK tax.
There are two types to choose from:
- Cash Junior ISAs, which work like a savings account, with money growing steadily through interest over time
- Stocks and Shares Junior ISAs, where money is invested in the stock market, offering the potential for higher long-term growth, although values can rise and fall
Beyond the savings themselves, a Junior ISA creates an opportunity to talk about children’s goals and aspirations. It could contribute towards university, travelling, learning to drive or the start of a deposit for their first home, helping them understand how decisions made today can support opportunities later on.
Small amounts can make a big difference
One of the biggest misconceptions about saving is that you need lots of money to get started. In reality, it’s often the habit of saving that matters most.
This can also help children understand that financial progress often comes from consistency rather than large sums of money. A lesson many of us wished we had learned sooner.
Whether it’s pocket money, birthday gifts or contributions from family members, every payment is an opportunity to show how small actions can add up over time.
A head start for adulthood
By the time a child can access their Junior ISA at 18, the savings can help open doors to whatever comes next. As they’ve seen those savings take shape over time and understand their value, they’ll be better informed to make decisions about how to use it.
That means when the time comes to access the money, it doesn’t feel like a windfall that has appeared overnight. Instead, it’s something they understand the value of. Those lessons can stay with them long after the money has been spent.
Summary
If you’re not sure where to start, you’re not alone, many adults feel the same way. By starting those conversations earlier, we can help the next generation feel better prepared.
A Junior ISA can do more than build savings for the future. It can help families open up conversations about money, ambitions and planning ahead, giving young people both a financial foundation and the confidence to build on it.
You don’t need all the answers to help your child develop a positive relationship with money. What matters most is making them feel comfortable asking questions and learning as they grow. By giving young people the tools, support and confidence they need, we can help them help themselves and take charge of their financial future.