Monzo’s General Manager of Wealth on helping build a brighter financial future for your kids

For many people, money isn’t something that was talked about much growing up. Perhaps it was something that happened behind closed doors, or was considered a grown-up conversation. Which is surprising, really, when you think about how much of our adult lives revolve around money.

But parents and carers have a real opportunity to change that, and it’s something our General Manager of Wealth, Jo Phillips, feels strongly about.

And it looks like plenty of kids are already getting into the savings habit with the help of their parents. Our data shows that they’re putting money aside for everything from birthdays and gaming consoles to guitars. Some have their sights set even further ahead – our Under 16s customers have savings Pots named ‘Adulthood’, ‘First Car’ and ‘University’, alongside a few for ‘Something Special’. And for those who haven’t quite decided what they’re saving for yet? They’ve simply named their Pot, ‘IDK’.

While some kids may be unsure about their savings plans, parents and guardians might already be thinking about longer-term goals. That’s where a Junior ISA could come in.

A little today could mean a lot of potential for tomorrow

A Monzo Junior ISA is a way to invest tax-free for your child’s future. The money belongs to them, but they can’t access it until they turn 18. Heads up: the taxes you pay depend on individual circumstances and rules could change in the future.

Investing for your child can feel like a big step, requiring lots of money to get started. But Jo wants more parents to know that it doesn’t have to be that way.

One advantage of starting early is having time on your side. Even small amounts invested regularly have the potential to grow over the years, helped by something called compounding – when any returns you earn are reinvested, giving them the chance to generate returns of their own.

Of course, investing comes with risk. The value of investments can go down as well as up, and you could get back less than you put in. But for families who are comfortable with that risk, a Junior Stocks & Shares ISA is one way to start building towards the future, without needing a big lump sum upfront.

“It’s also a team effort”

When it comes to putting money aside for your kids’ future, you don’t have to do it alone.

So rather than another toy they might grow out of, loved ones have the option to contribute towards the bigger milestones still to come.

Big futures start with small steps

As Jo says, helping your kids build a brighter financial future doesn’t have to mean having lots of money to spare. It can start with everyday conversations about money, and putting aside small amounts regularly.

We can’t know exactly what our children will want to do when they grow up, but we can start thinking about how to give them more choices when they get there.

If you’re thinking about investing for your child’s future,explore Monzo's Junior Stocks & Shares ISA to see how it works.

Both you (the parent/guardian) and your child must be UK residents. You need a Monzo current account to use Monzo Investments. 18+. Ts&Cs apply. You won’t pay Monzo Investments fees, just ongoing fund management costs.