As we approach the end of the tax year, most conversations focus on pensions and ISAs for ourselves. But there’s one allowance many families overlook, and once 5th April passes, you can’t get it back.
The Junior ISA
Each child can have up to £9,000 invested every tax year. Parents, grandparents and even friends can contribute. When the tax year ends, any unused allowance is lost.
One of the most common concerns I hear is this:
“What happens when they turn 18? Won’t they just spend it all?”
It’s a fair question. Handing over a lump sum to an 18-year-old can feel daunting.
But recent research from investment platform AJ Bell suggests those fears may be overstated. The majority of young people don’t empty their Junior ISA when they gain control. Many continue saving into an adult ISA, and full cash withdrawals are relatively uncommon.
Perhaps we underestimate them
When children grow up knowing they have savings, and understanding why that money exists, they often develop a greater sense of financial awareness. Some may use part of it for travel or education. Others leave it invested. Many take a balanced approach.
That’s not reckless, it’s considered
The real advantage of starting early is time. Even modest contributions, invested consistently, can grow meaningfully over 18 years thanks to compounding.
You don’t need to use the full £9,000 allowance. Smaller, regular amounts can build into something significant.
With the tax year closing soon, it’s worth asking:
“Have we used our child’s allowance this year?”
If not, this could be a simple, tax-efficient step that benefits them long after their 18th birthday.
The value of investments can fall as well as rise. You may get back less than you invested.
Approver Quilter Financial Services Limited. 27/02/2026
About the author: David Braithwaite is a highly regarded financial expert, known to many as BBC Radio Kent’s “Money Mentor,” where he shares practical advice and insights on managing money effectively. As the founder of Citrus Financial, David has built a reputation for providing tailored financial guidance to individuals and families, helping them achieve their financial goals with confidence.
