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Pocket Money Apps and Children's Savings Accounts: How to Gift Money to Kids


Financial literacy has yet to find its right place in school curricula, so many parents ponder the best ways to prepare their children for a financially secure future. With the new year ahead of us, consider gifting your kids something that could set them up for life. 

Here's how to make money both a meaningful and empowering gift for your kids. 

1. Junior ISAs (JISAs): A Long-Term Investment in Their Future 

Junior Individual Savings Accounts (JISAs) let you invest in your child’s future. These accounts allow you to contribute up to £9,000 per tax year, with the funds growing tax-free until your child turns 18. At this point, the JISA can convert into an adult ISA, further extending its tax-free benefits. 

Investing in stocks and shares, JISA could potentially yield higher returns, setting a robust financial foundation for your child's future endeavors be it education, a first car, or a home. 

2. Pensions for Kids: Securing Their Retirement Early 

While retirement seems a distant reality for a child, starting a pension fund early has significant long-term benefits. A Junior Self-Invested Personal Pension (SIPP) allows contributions up to £2,880 each tax year, with the government adding a 20% tax relief. Over 18 years, this can accumulate to a substantial amount, ensuring a secure financial cushion for their retirement. 

3. Premium Bonds: Exciting and Potentially Rewarding 

Premium Bonds issued by NS&I offer a unique gifting option. They don't earn interest, but each bond is entered into a monthly draw with the potential to win up to £1 million. It's a fun way to engage children in the concept of saving, with the excitement of a potential win each month. 

4. Children's Savings Accounts: Simplicity and Growth 

For a straightforward approach, consider opening a savings account for your child. Many banks now offer attractive interest rates, making it a great option for teaching them the basics of saving and money management. Some accounts offer as much as 5% interest on savings, providing a tangible growth on their deposits. 

5. Pocket Money Apps: Tech-Savvy Financial Learning 

In an increasingly digital world, pocket money apps help you gift cash while teaching money management. Apps like GoHenry, aimed at children aged 6 to 18, work like prepaid debit cards. They allow you to monitor spending and are an excellent tool for teaching kids about financial responsibility. Personalized with their favorite images, these cards make finance fun and relatable. 

Investing in Financial Wisdom 

While toys and games offer immediate joy, financial gifts such as JISAs, pensions, premium bonds, savings accounts, and pocket money apps provide long-term benefits. They not only secure your child’s financial future but instill valuable lessons in financial literacy and responsibility. 

Consider these options as gifts that keep on giving, empowering your children for a lifetime of financial independence and success.
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