How to Make Your Baby £15,720 by Their 18th Birthday

UK parents are being urged to start saving early, as financial experts reveal a simple savings plan could leave children with over £15,720 by the time they turn 18.

According to money advisers, opening a Junior ISA (JISA) or a child savings account shortly after birth and making consistent monthly contributions could set up a sizeable financial cushion for adulthood.

How It Works

If parents save just £60 a month from birth until their child’s 18th birthday, with an average annual interest or investment growth of 4%, the savings could total £15,720. This money could help cover university fees, a first car, or even form part of a house deposit.

Government Support

In the UK, every child under 18 is eligible for a Junior ISA, which allows tax-free savings of up to £9,000 a year. Parents, grandparents, and family members can contribute, making it a flexible tool for long-term financial planning.

Rising Costs of Adulthood

With university tuition fees reaching £9,250 a year and first-time buyer deposits averaging over £30,000, experts say starting early is crucial.

Sarah Coles, a personal finance analyst, said:
“Small, regular contributions can add up to life-changing sums. Even if families can’t save much, starting early gives the money time to grow.”

A Growing Trend

More UK parents are now prioritising early savings and investments for their children, especially as the cost of living continues to rise. Financial advisers recommend setting up direct debits into savings accounts to build the habit and ensure consistency.