Investing for College in the UK (2025 Edition): A Slow Money Guide for Families
Introduction: Why College Investing Matters in 2025
Your child’s 18th birthday should feel like a moment of freedom. Instead, for too many families, it’s the start of a long financial hangover. In the UK today, the average cost of a three-year degree is between £57,000 and £65,000, when you add up tuition, accommodation, food, and living expenses. Student loans cover tuition, but they don’t erase costs — they simply shift them into your child’s future.
The numbers tell a worrying story. The average graduate now leaves university with £45,000+ of debt. Repayment terms have tightened, interest rates fluctuate, and inflation means daily living costs rise faster than wages. For many graduates, this debt delays home ownership, retirement saving, and financial independence.
Parents feel this pressure keenly. You want your child to have the education they deserve, without beginning adult life under a cloud of financial stress. But the task feels overwhelming. How do you cover such a large figure? What if you start late?
Here’s the hidden truth: you don’t need to cover the full cost to make a life-changing difference. Even modest contributions compound into meaningful support.
£25/month from birth = £10,000+ by age 18 (with modest growth).
Redirecting birthday money into a Junior ISA instead of toys becomes thousands by university age.
Automating small amounts with apps ensures progress even when life gets busy.
This is the heart of the Slow Money philosophy:
Time matters more than timing. Start now, not “someday.”
Consistency compounds. £25 a month beats waiting to save a lump sum.
Progress beats perfection. Even small contributions reduce future burdens.
Think of it like gardening. You don’t plant one tree at 17 and expect shade by 18. You plant small, steady seeds that grow quietly until the day your child needs them.
This cornerstone guide explores the most powerful UK pathways for investing in your child’s education: Junior ISAs, Lifetime ISAs, Child SIPPs, and trusted savings/investing apps. Each section gives you the problem, the Slow Money solution, practical steps, a real-life vignette, FAQs, and award-anchored platforms you can trust.
Because investing for college isn’t about chasing fast wins. It’s about building freedom, stability, and opportunity — slowly, steadily, securely.
Junior ISAs: The Cornerstone of College Investing
The Problem in 2025
For many UK parents, the first instinct when saving for a child’s future is to open a simple children’s savings account at their local bank. It feels safe, familiar, and easy. The trouble? Most of these accounts pay 1–2% interest at best, which is well below inflation. While you may feel comforted by seeing the balance rise, in real terms the money is shrinking.
Meanwhile, tuition and living costs are rising steadily. University accommodation costs have grown faster than general inflation for five years running. Food and travel are also more expensive than a decade ago. When you set aside money in a low-interest account, you’re essentially promising your child less purchasing power at 18 than you saved at 2.
There’s also a psychological barrier. Parents see figures like £60,000 and think, why bother if I can’t save that much? The result is inaction. But the truth is: every contribution matters. Even small, consistent savings can lighten the load. The problem isn’t the size of your savings — it’s starting too late or not at all.
The Slow Money Solution
Enter the Junior ISA (JISA): the UK’s flagship savings and investment account for children. Every child under 18 is eligible, with a £9,000 annual contribution allowance (2025). The growth is tax-free, and funds are locked until 18, when they automatically become an adult ISA in your child’s name.
There are two types:
Cash JISA: Essentially a savings account within the JISA wrapper. It’s safe and stable, but returns are modest. Best if your child is already a teenager.
Stocks & Shares JISA: Invested in funds, ETFs, or shares. Short-term volatility, but historically higher long-term returns. Ideal if you have at least 5–10 years before your child reaches adulthood.
The Slow Money approach encourages balance. For younger children, lean into stocks for growth. As they approach university age, shift gradually toward cash for stability. It’s not about betting everything on one option — it’s about combining resilience with growth.
10 Practical Steps
Check for a Child Trust Fund (CTF):
Children born between 2002–2011 may already have a government-seeded Child Trust Fund. Many sit forgotten. Transferring into a JISA usually unlocks better growth, lower fees, and more options.Pick the Right Provider:
Not all JISAs are equal. Award-winning providers like Moneyfarm, which scooped Best Buy SIPP 2025 and Best for Low-Cost ISA & Shares at the Boring Money Awards, offer diversified portfolios and user-friendly apps.Automate Contributions:
£25–£50 a month might not sound like much, but over 18 years it compounds into thousands. Automation is key: if it leaves your account before you notice it, you won’t be tempted to skip.Balance Stocks and Cash:
A toddler has 15 years before university — plenty of time for market ups and downs. Lean toward stocks. A 15-year-old has just three years, so lean toward cash for predictability.Reinvest Dividends:
If you hold stock-based JISAs, check the default option. Always reinvest dividends. It may not feel impactful in year one, but by year 18 reinvested income significantly boosts growth.Redirect Windfalls:
Birthday money, Christmas gifts, child benefit — even occasional extras can go into the JISA. Over time, those one-offs make a big difference.Stay Consistent in the “Boring Years”:
The years between ages 5–12 may feel uneventful. Nothing dramatic happens, but that’s exactly when consistency matters. This is the “slow cooking” stage of compounding.Review Once a Year:
Don’t micromanage monthly. Once a year, check fees, allocations, and whether your child’s age means shifting toward safer assets.Pair with Apps:
Use tools like Chip or Snoop to free up cash invisibly. Snoop identifies wasted subscriptions; Chip skims small amounts into savings. Both can top up a JISA without stress.Teach Your Child Along the Way:
At 12 or 13, start showing your child their account. Let them see how £25 a month grew. This isn’t just about money — it’s a hands-on financial education.
Lifestyle Vignette
Sarah, a 34-year-old mum of two, decided to open a Stocks & Shares JISA for her daughter when she turned one. She contributed £50 monthly — an amount she admits she barely noticed leaving her account. After ten years, she’d saved £6,000. But thanks to market growth and reinvested dividends, the account was worth over £9,200.
“The money matters, of course,” Sarah says, “but the real win is what it’s teaching my daughter. At 11, she asked me why the balance went up even when I didn’t put in more. That’s a conversation I never had with my parents. She’s already learning about compounding — and that’s the gift that lasts.”
FAQs
Can I withdraw the money before 18?
No. That’s the power of a JISA. The funds are locked until your child turns 18, then they roll into an adult ISA. While it may feel restrictive, this feature ensures the money remains untouched for its true purpose: your child’s future.
What if I can’t afford the full £9,000 allowance?
Most parents can’t, and that’s perfectly fine. The allowance is a ceiling, not a target. Even £25/month builds into thousands. Consistency is what matters. A child who receives £25/month for 18 years enters adulthood with a cushion — something many never had.
Cash JISA or Stocks JISA?
It depends on your timeline. If your child is under 12, stocks usually win in the long run because they outpace inflation. For teenagers, a cash JISA reduces volatility risk and protects value. Many parents split contributions, blending growth with security.
What if my child doesn’t go to university?
The JISA becomes an adult ISA at 18, giving them flexibility. They could use it for a deposit on a home, to fund further training, or simply keep it invested for future goals. Nothing is lost.
Can grandparents or relatives contribute?
Yes. Anyone can pay into your child’s JISA. Some families redirect gifts, asking relatives to contribute instead of buying more toys. This makes grandparents part of the legacy.
Lifetime ISAs: Empowering Older Teens
The Problem in 2025
By the time children turn 18, many will have earned money from weekend jobs, internships, or holiday work. Some receive cash gifts from family, while others start saving small amounts toward their first car or independence. Too often, though, these savings sit in a standard current account or low-interest savings account where inflation quietly erodes their value.
Parents often find themselves asking: What next? A Junior ISA is no longer available. University is around the corner, but so is the dream of home ownership. How can you encourage your teenager to continue the habit of saving without locking their money into something inflexible?
The answer is often overlooked: the Lifetime ISA (LISA).
The Slow Money Solution
The Lifetime ISA was created for adults aged 18–39. It allows contributions of up to £4,000 per year, and the government adds a 25% bonus — that’s up to £1,000 of free money annually. The funds can be used for two key goals: buying a first home or funding retirement.
While not designed specifically for university costs, LISAs play a powerful role in building good habits during those formative years. They turn a teenager’s savings into something with visible rewards — the 25% bonus is a motivator few young people ignore. And for parents, it’s a tool that creates choice. Even if the money isn’t used for education, it strengthens their financial foundation.
8 Practical Steps
Open at 18 Immediately:
Encourage your child to open a LISA as soon as they’re eligible. The earlier they begin, the more years they benefit from the government bonus. Many teens won’t think of this on their own, so parental guidance is key.Match Their Effort:
If they save £50/month from a part-time job, consider matching it. Doubling their contribution not only accelerates growth but also shows them you value their discipline.Highlight the Bonus Clearly:
Teenagers love instant results. The 25% government bonus is exactly that. Show them how £100 becomes £125, and £1,000 becomes £1,250. It makes saving feel rewarding in real time.Frame Goals Around Freedom:
Many young adults can’t yet picture retirement. But they can picture moving out, buying a flat, or reducing debt. Frame the LISA as a freedom fund — money that gets them closer to independence.Automate Contributions:
Use apps like Chip [affiliate] to drip-feed small amounts into the LISA automatically. Automation builds consistency, and consistency compounds.Teach Them About Penalties:
Withdrawing funds for anything other than a home or retirement triggers a 25% penalty — effectively losing the government bonus. Instead of seeing this as a drawback, frame it as a feature. It builds financial discipline.Keep Perspective:
Remind your teen that even if they don’t use the LISA for education or housing, the money rolls forward toward retirement. Nothing is wasted.Check Annually:
Set an annual “finance day” where you sit down and review the account together. It normalises talking about money and keeps them engaged.
Lifestyle Vignette
James, 19, worked weekends at a supermarket and put £100/month into his LISA. His parents quietly matched his contributions. After just two years, James had saved £2,400, but with the government bonus, his balance was over £3,000.
“The best part was seeing the bonus land,” James said. “I’d never had the government give me money before. It felt like a game I wanted to keep playing. Saving wasn’t just boring anymore — it was rewarding.”
That shift in perspective — from drudgery to motivation — is what makes the LISA so powerful for teens.
FAQs
Can a LISA replace a Junior ISA?
No. JISAs are for under-18s, while LISAs begin at 18. They complement each other in sequence. Ideally, a teen rolls into a LISA with habits already built through a JISA.
What if my child doesn’t use the money for university?
That’s fine. LISAs are primarily designed for housing or retirement. If university isn’t their path, the funds still serve life-changing purposes.
What about withdrawal penalties?
If funds are withdrawn for non-approved reasons, there’s a 25% penalty. This means losing the government bonus and a little of the contribution. But rather than a trap, think of it as a guardrail. It keeps the money working for their future.
How much should they contribute?
There’s no minimum, but even small amounts matter. £50/month over five years = £3,000 in contributions, plus £750 in bonuses, before growth. That’s £3,750 saved during a period when many peers are spending everything.
Is the LISA worth it if my child is undecided?
Yes. The flexibility is its strength. Even if they’re unsure about university or housing, the LISA can sit quietly until they’re ready. It’s never wasted.
Child SIPPs: Planting for the Long Game
The Problem in 2025
When parents think about saving for their children, the horizon rarely stretches beyond university. Tuition, rent, food, and travel loom so large that long-term goals like pensions feel almost laughably distant. Why think about retirement when my child hasn’t even finished school?
But here’s the paradox: retirement is where time matters most. Most adults regret not starting earlier. The difference between starting a pension at age 2 versus 22 isn’t marginal — it’s life-changing.
In 2025, retirement is more uncertain than ever. The state pension age keeps creeping upward, workplace pensions are stretched, and many young adults will face a more precarious financial future. If you can plant the seed of a pension early, you’re not just paying for university — you’re gifting your child a lifetime of financial resilience.
The Slow Money Solution
The Child SIPP (Self-Invested Personal Pension) is one of the most powerful but underused tools available. Parents (or grandparents) can contribute up to £2,880 a year. The government then tops this up with tax relief, making it £3,600 annually.
The money is locked until your child reaches retirement age — which is exactly what makes it so powerful. Even small, consistent contributions in childhood have decades to grow. For example:
£50/month from birth to age 18 = £10,800 contributed.
Left untouched, that could grow to £500,000+ by age 60 at modest 5% annual growth.
That’s the magic of compounding across six decades. You don’t need huge sums. You just need time.
For parents who can’t afford both a JISA (for 18) and a SIPP (for 60+), the JISA should take priority. But if you have capacity — or grandparents who want to leave a meaningful legacy — a Child SIPP is one of the most generous gifts you can make.
8 Practical Steps
Open Early:
The earlier, the better. Even starting at age 2 instead of 12 can double or triple the eventual pot. Think of it like planting an oak tree — the sooner it’s in the ground, the taller it grows.Set Modest Contributions:
Don’t feel pressured to max the allowance. Even £25–£50/month builds immense value over decades. Remember, time is the multiplier.Use Award-Winning Providers:
Platforms like InvestEngine make ETFs accessible with zero-commission investing. In fact, InvestEngine won Best ETF Platform at the Good Money Guide Awards 2024 and Best Robo-Adviser at the MoneyWeek Readers’ Choice Awards 2025. Awards matter because they show the platform has been tested against competitors and trusted by users.Automate Contributions:
Treat the SIPP like a bill. Set up a direct debit and forget it. The less you think about it, the more consistent it becomes.Choose Low-Cost Funds:
Over 60 years, fees matter more than returns. A 0.3% annual fee versus 1.5% can mean tens of thousands of pounds difference at retirement. Stick to low-cost index funds or ETFs.Pair With Short-Term Accounts:
Don’t confuse goals. The JISA is for age 18, the SIPP for retirement. Both are vital, but they serve different stages of life.Invite Grandparents:
Many grandparents love the idea of contributing to a pension their grandchild will benefit from long after they’re gone. It creates a sense of legacy.Educate Early:
As your child grows, explain pensions in age-appropriate ways. By the time they’re teenagers, show them the account. Understanding the long game is part of financial education.
Lifestyle Vignette
Amira, 40, decided to contribute £30/month into her daughter’s Child SIPP. Over 18 years, she invested just £6,480 — less than the cost of a used car. But with government tax relief and decades of compounding, that modest sum could grow into hundreds of thousands by retirement.
“She won’t see it for decades,” Amira says. “But one day she’ll realise it was the longest-lasting gift I ever gave her. I’m not just helping her through university — I’m helping her through life.”
FAQs
Why save for retirement before university?
Because time is the most powerful factor in investing. £1 saved at age 2 is worth several times more than £1 saved at 30. You’re buying time — the one resource you can’t replace later.
What if I can’t afford both a JISA and a SIPP?
Focus on the JISA first. University costs arrive sooner and need attention. The SIPP is an extra layer, not a replacement. Think of it as “phase two” if you have extra capacity or supportive relatives.
What happens when my child turns 18?
The SIPP remains locked, but it automatically transfers into an adult pension in their name. They can continue contributing into it as adults. It becomes the foundation of their retirement savings.
Can grandparents or relatives contribute?
Yes, and many do. It’s often more meaningful than toys or short-term gifts. A SIPP contribution can grow for decades, creating a legacy across generations.
Isn’t retirement too far away to matter now?
It may feel abstract, but that’s exactly why early contributions are powerful. What feels small now becomes huge later. It’s slow money at its purest: patient, compounding growth.
Platforms & Apps That Make College Investing Easier
The Problem in 2025
Even when parents know they should be saving for their children’s education, the reality is often messier. Bills arrive, inflation squeezes household budgets, and the process of choosing an account feels overwhelming. Traditional banks, with their clunky interfaces and low interest, don’t help. For many families, the biggest obstacle isn’t willingness — it’s finding a way that feels manageable.
Technology has changed that. Financial apps and online platforms have made saving and investing more accessible than ever. They automate habits, make investing user-friendly, and show results in real time. And crucially, many of these platforms have been independently recognised with awards, proving they’re not just trendy names but respected, regulated players.
The Slow Money Solution
Slow Money is about progress over perfection. Instead of waiting until you can “save properly,” you start small and build habits. Apps and platforms help by making savings invisible and investing automatic. They turn the abstract idea of “college investing” into practical, everyday steps.
Here are six of the most trusted UK platforms for 2025:
🏆 Moneyfarm — Award-Winning Robo-Advisor
Moneyfarm has become one of the UK’s most recognised robo-advisors, simplifying investing through diversified portfolios tailored to your goals. You pick a risk profile, automate contributions, and let the platform handle the rest.
And it’s not just trusted by users — it’s award-winning:
Boring Money Best Buy Awards 2025: Best Buy SIPP and Best for Low-Cost ISA & Shares
YourMoney.com Awards 2025: Best Investment ISA – Medium Portfolio
Investors’ Chronicle: multiple 5-star ratings
Good Money Guide Awards: Best Private Pension
For parents setting up Junior ISAs or LISAs, Moneyfarm offers a credible, low-cost way to invest without needing to pick individual stocks. It’s the definition of Slow Money: steady, consistent, hands-off growth.
🏆 GoHenry — Teaching Kids Financial Confidence
GoHenry began as a prepaid debit card but has evolved into a platform that teaches children money skills through earning, spending, and saving. In 2023, it won the FinTech Breakthrough Award for Best Financial Education Platform.
Why does this matter for college investing? Because funding is only half the story. If your child doesn’t know how to manage money, the pot you build may not stretch far. GoHenry gives kids practical tools to budget, save, and even dip a toe into investing — with parental oversight. It makes financial literacy part of everyday life, long before they leave home.
🏆 Snoop — Finding the Money You Didn’t Know You Had
The cheapest pound you’ll ever save is the one you don’t waste. That’s Snoop’s speciality. This app analyses your spending, highlights unused subscriptions, and finds cheaper deals on bills. It’s been repeatedly recognised for its innovation:
Open Banking Expo Awards: Best Consumer App
British Bank Awards: Innovation of the Year
Banking Tech Awards: Best Open Banking Solution
For families who feel they have “nothing spare” to save, Snoop can unlock £20, £50, or even £100 a month. Redirected into a JISA or LISA, those amounts compound into thousands by the time your child turns 18.
🏆 InvestEngine — The Low-Cost ETF Powerhouse
InvestEngine focuses exclusively on ETFs, offering both managed and DIY portfolios with zero commission. It’s one of the fastest-growing platforms in the UK and has the awards to prove its credibility:
Good Money Guide Awards 2024: Best ETF Platform
MoneyWeek Readers’ Choice Awards 2025: Best Broker for ETFs and Best Robo-Adviser
Finder Customer Satisfaction Awards 2024: Joint first in investing, with 97% of users saying they’d recommend it
For parents investing over long horizons — especially in Child SIPPs — fees matter. Every fraction of a percent saved in costs compounds into significant gains over decades. That’s why InvestEngine stands out.
🏆 Moneybox — From Spare Change to Serious Savings
Moneybox started as an app that rounded up your spare change and invested it. Today, it offers a full suite of products: Junior ISAs, Lifetime ISAs, pensions, and General Investment Accounts — all in one place.
It’s also been independently recognised:
Boring Money Awards 2023: Best App for First-Time Investors
YourMoney.com Awards 2024: Best Investment App
Shortlisted by the Financial Times / Investors’ Chronicle for customer satisfaction
Moneybox is particularly appealing for families who want to start small and grow. Its friendly interface makes investing approachable for beginners, while still offering serious products for long-term goals.
Chip — Invisible, Automated Saving
Chip may not yet have the award shelf of Moneyfarm or Moneybox, but it excels at one thing: automation. It links to your bank, analyses spending patterns, and moves tiny amounts into savings without you noticing.
For parents who feel they “can’t spare anything,” Chip proves them wrong. Even £3 here and £7 there, redirected consistently, becomes hundreds a year. Channelled into a JISA or LISA, those invisible savings can make a real difference over 18 years.
Lifestyle Vignette
Emma and Daniel, parents of two, always meant to save but struggled to stay consistent. Snoop flagged £40/month in unused subscriptions, and Chip quietly saved another £30/month. They funnelled the extra £70 into their children’s JISAs through Moneyfarm.
“It felt like we weren’t even trying,” Emma said. “The apps did the heavy lifting. For the first time, we’re confident we’re actually saving for their future instead of just talking about it.”
FAQs
Are apps as safe as banks?
Yes. All the platforms mentioned are regulated by the Financial Conduct Authority (FCA). Funds are ring-fenced and, in many cases, protected by the Financial Services Compensation Scheme (FSCS).
Which app is best for me?
It depends on your needs:
Want easy investing? Moneyfarm, InvestEngine, or Moneybox.
Want to teach kids? GoHenry.
Want to free up spare cash? Snoop.
Struggle to save at all? Chip.
What about fees?
Moneyfarm and InvestEngine are praised for low fees. Moneybox charges slightly more but offers huge accessibility. Snoop and Chip have optional fees but often save families more than they cost.
Do I need more than one app?
Not necessarily, but combining them creates an ecosystem. For example: use Snoop to find savings, Chip to automate them, and Moneyfarm or Moneybox to invest them.
What if I’m not tech-savvy?
Start with one app, set small goals, and get comfortable. Each platform has support teams and guides. Once you see progress, confidence grows naturally.
Research & Data: The Numbers Behind College Investing in 2025
If saving for college feels overwhelming, it helps to ground the conversation in data. Numbers cut through the noise, showing why starting early and saving steadily matters more than waiting for the “perfect moment.” Here’s the current picture for UK families in 2025.
The Cost of University
The true cost of a three-year degree in the UK is now £57,000–£65,000. This isn’t just tuition — which is capped at £9,250/year in England but still totals nearly £28,000 over three years. It’s accommodation, food, transport, course materials, and social life.
Accommodation: £6,000–£9,000 per year depending on city.
Food & living: £3,000–£4,000 per year (before inflation).
Transport: £600–£1,200 annually.
Books & supplies: £400–£700 annually.
Tuition fees are largely covered by student loans, but those loans don’t cover everything else. This is why many students rely on part-time jobs, parental support, or additional loans.
The Weight of Debt
The average UK graduate leaves with £45,000+ in student debt. Unlike other forms of debt, student loans don’t appear on credit reports in the same way, but they do affect take-home pay for decades.
For many graduates, this debt delays milestones:
Buying a home: Lenders consider repayments when assessing affordability.
Saving for retirement: With less disposable income, pensions are often underfunded.
Mental health: Surveys show student debt is a top anxiety for 7 in 10 young adults.
Even small parental contributions can reduce how much students borrow. Every £1 saved now is £1 less borrowed later — and that difference ripples across decades.
Inflation: The Silent Erosion
Inflation isn’t just a headline figure; it directly impacts university costs. At 3–5% per year (the average range over the past decade), the cost of accommodation, food, and travel can double in less than 20 years.
This is why leaving money in low-interest children’s savings accounts is so dangerous. A 1% return in a 4% inflation world means your money loses 3% of its purchasing power every year. What feels “safe” is actually shrinking.
The Power of Compounding
Compounding is the engine that makes early, small contributions so powerful. The principle is simple: your money earns returns, and then those returns earn returns. Over time, the growth accelerates.
Consider three families each saving £50/month for their child’s education:
Start at birth: By age 18, contributions total £10,800. With modest 5% annual growth, the account is worth ~£21,000.
Start at age 6: Contributions total £7,200. With 5% growth, the account is ~£11,000.
Start at age 12: Contributions total £3,600. With 5% growth, the account is just ~£4,500.
The message is clear: time matters more than timing. Even small amounts saved early outpace larger amounts saved late.
Behavioural Data: Why Families Delay
Research from Money Advice Service and Boring Money shows why parents procrastinate:
63% believe they “don’t have enough spare” to start.
47% think small amounts won’t matter.
1 in 3 intend to start later, when they earn more.
But behavioural finance studies show that when saving is automated — through direct debits or apps like Chip and Moneybox — participation rates jump. It’s not about income. It’s about turning good intentions into habits.
Plain-English Takeaway
When you strip away the jargon, the numbers tell a simple story:
University is expensive, and costs are rising faster than wages.
Debt is the default for most graduates — but every parental contribution chips away at that burden.
Inflation silently eats away at cash savings, making investment a necessity for long-term goals.
Compounding rewards those who start early, even with tiny amounts.
Slow Money families don’t chase quick wins. They play the long game. They accept that £25 a month won’t pay for everything, but it will lighten the load. And in a world where financial stress shadows too many graduates, even lightening the load can be life-changing.
FAQs: Your Questions Answered
Parents often share the same fears and “what ifs” when it comes to saving for university. Here are the most common questions — answered in plain English, with a Slow Money lens.
1. Is it too late to start if my child is already a teenager?
Not at all. While compounding works best with time, even two or three years of savings make a difference. £100/month from ages 15–18 adds up to £3,600 — which might cover books, travel, or a term’s rent. Just as important, it models financial discipline. Your child sees you prioritising their future, which can inspire them to keep saving as an adult.
2. Should I prioritise saving for my child’s education or my own retirement?
Always secure your retirement first. You can borrow for education, but you can’t borrow for retirement. That doesn’t mean ignoring education savings; it means balancing. Even if you can only save £25/month for your child while focusing on your pension, that small contribution still matters. It’s better to do a little for them consistently than to stretch yourself thin and risk your own stability.
3. Cash JISA or Stocks & Shares JISA — which is safer?
Cash JISAs are safer short-term, but they struggle against inflation. Stocks & Shares JISAs can fluctuate in the short run but historically outperform over longer periods. A blended approach often works best: stocks for growth in the early years, cash for stability as university nears. The key is matching the account to your child’s age and your risk comfort.
4. What happens if my child doesn’t go to university?
Nothing is wasted. At 18, a Junior ISA automatically becomes an adult ISA. Your child can then use it for a deposit on a home, to continue investing, or for another path like training or travel. Saving isn’t about locking them into university — it’s about giving them financial options at adulthood.
5. How do student loans interact with parental savings?
Student loans cover tuition but not living costs. Having a JISA or LISA savings pot doesn’t affect loan eligibility. Instead, it reduces reliance on overdrafts, part-time work, or additional borrowing. In practice, this means less stress and more choice during university.
6. Can grandparents or relatives contribute to these accounts?
Yes, and it’s one of the easiest ways to involve family. Relatives can transfer money directly into a JISA, or even open a Child SIPP contribution in the child’s name. Many families ask grandparents to redirect birthday or holiday gifts into these accounts, creating a legacy that lasts decades.
7. What if my income is irregular — can I still save?
Absolutely. You don’t need to contribute every month. Even ad hoc deposits — when you get a bonus, tax rebate, or side hustle income — add up. Apps like Chip and Moneybox help by skimming irregular amounts automatically, so saving doesn’t feel like an extra burden.
8. Are financial apps really safe for children’s futures?
Yes, provided you stick to FCA-regulated platforms like Moneyfarm, InvestEngine, Moneybox, GoHenry, Chip, and Snoop. Funds are ring-fenced, often FSCS-protected, and subject to the same regulations as high street banks. Always double-check regulation before signing up, but rest assured the apps we’ve highlighted are credible.
9. How much should I realistically aim to save?
There’s no one-size answer. Some parents aim to cover 100% of living costs, others just want to help with books and travel. A realistic benchmark: £25–£100/month per child. Over 18 years, that can compound into thousands. Focus less on hitting a specific figure and more on creating a consistent habit.
10. Do savings affect student benefits or bursaries?
Generally, no. Parental savings in ISAs and SIPPs don’t reduce eligibility for tuition loans or most bursaries. Some means-tested grants consider household income, but savings pots in your child’s name aren’t usually counted. If in doubt, check specific university policies.
11. Is investing risky compared to just saving cash?
There is risk in investing — markets rise and fall. But there’s also risk in saving only in cash, because inflation erodes value. Over 10–18 years, a balanced investment strategy in a Stocks & Shares JISA typically outpaces cash. The bigger risk is often doing nothing.
12. Can my child manage their own JISA or LISA?
Legally, yes — at 16 they can take control of a JISA. Some parents worry about this, but it can be a teaching moment. Involve them gradually. Show them statements, explain growth, and help them see the account as a tool rather than a windfall.
13. What if my child studies abroad?
Your UK-based JISA, LISA, or SIPP remains valid. The funds can be used for any purpose once your child turns 18. If they study abroad, savings can cover flights, visas, or accommodation. Just be mindful of currency exchange when transferring funds internationally.
14. How do I balance saving for multiple children?
Divide contributions fairly but don’t panic if amounts differ slightly. Some parents alternate deposits monthly between children. Others set up standing orders of equal amounts. The important part is that something is saved for each child, not that it’s perfectly equal every time.
15. Should I involve my teenager in the process?
Yes. Involving them builds financial literacy and ownership. Show them how their JISA is growing. Encourage them to add part-time income into a LISA. Let them feel invested (literally) in their own future. It’s one of the best life skills you can teach.
16. What if fees eat into returns?
Fees matter. Over decades, high fees can erode tens of thousands of pounds. That’s why low-cost platforms like InvestEngine and Moneyfarm stand out. Always compare total expense ratios (TERs) and platform fees. Slow Money families prioritise steady, low-cost growth over flashy, expensive funds.
17. Can my child use their JISA for a first home instead?
Yes. When the JISA converts into an adult ISA at 18, the funds are theirs. Many young adults choose to use it for a house deposit. That’s not a failure — it’s still giving them freedom and reducing reliance on debt.
18. Should I keep savings in my name or my child’s?
For education purposes, savings in your child’s name (JISA) are often better, because they’re tax-free and ring-fenced. But some parents prefer to keep funds in their own name for control. The choice depends on whether you want to guarantee the money reaches your child directly at 18.
19. Do these platforms protect against inflation?
No account can eliminate inflation risk, but Stocks & Shares JISAs, LISAs, and SIPPs are designed to grow faster than inflation over time. Cash accounts protect value in the short-term, but only investments can realistically outpace rising costs long-term.
20. What if my child doesn’t value money?
This is where combining education with saving matters. Tools like GoHenry or involving them in JISA check-ins teach children that money isn’t just for spending — it’s for building choices. Even if they don’t “get it” at 12, by 18 the lesson often lands.
21. How do I explain compounding to my child?
Use simple analogies. Say: “If you plant an apple tree, it gives you apples. But if you plant those seeds, you get more trees — and even more apples. Money works the same way.” Relating compounding to everyday life helps teenagers grasp its magic.
22. Can my child contribute to their own accounts?
Yes. From 16, they can pay into their own JISA. Once 18, they can open a LISA. Even small part-time earnings can be funnelled into these accounts, especially with parental matching. It’s a way to teach responsibility and show the value of saving early.
23. Are there tax risks for parents?
Not with JISAs or LISAs. These accounts are tax-sheltered, so growth is free from income and capital gains tax. The only watchpoint is exceeding annual contribution limits (£9,000 for JISAs, £4,000 for LISAs, £2,880 net for Child SIPPs). For further information, see below.
24. What if my child changes career plans?
That’s exactly why flexibility matters. Whether they go to university, pursue vocational training, or take time out, savings in JISAs and LISAs remain theirs. You’re not funding a single path — you’re funding freedom.
25. How do I stay motivated to save for 18 years?
Remember the bigger picture. Print a simple chart showing projected growth of your contributions. Celebrate milestones — £1,000, £5,000, £10,000. And keep the Slow Money mindset: it’s not about perfection, it’s about steady, grounded progress.
Tax Rules for Parents & Grandparents (UK, 2025)
When saving for a child’s future, families often ask: “What happens with tax if parents or grandparents contribute?” The good news: the UK system makes JISAs and Child SIPPs highly tax-efficient. Here’s what you need to know:
Junior ISAs (JISAs)
Tax-free growth – All interest, dividends, and capital gains inside a JISA are tax-free.
Contributions – Anyone (parents, grandparents, relatives, friends) can pay in, up to the annual allowance (£9,000 in 2025).
Inheritance Tax (IHT) – Contributions are classed as gifts.
Each adult can gift £3,000 per year without affecting their estate (the “annual exemption”).
Small gifts up to £250 per person per year are also exempt.
Larger gifts may be counted toward IHT if the donor passes away within seven years.
Child SIPPs
Tax relief boost – Parents or grandparents can contribute up to £2,880 net per year. The government automatically tops this up to £3,600 with 20% tax relief.
Inheritance Tax – Like JISAs, contributions are treated as gifts, so the same IHT rules apply.
Standard Child Savings Accounts (outside JISA/SIPP)
The £100 rule – If money saved in a child’s regular bank account earns over £100 of interest per year, it may be taxed as the parent’s income.
Workaround – This doesn’t apply to JISAs or SIPPs, which remain tax-sheltered.
The takeaway:
For most families, contributions into JISAs and Child SIPPs are completely tax-efficient. Just be mindful of the inheritance tax gift allowances if grandparents plan to make large lump-sum contributions. For very large gifts, it’s worth seeking professional advice — but for everyday savings, these accounts are designed to be safe, simple, and tax-free.
Note: Tax rules can change. Always check the latest guidance directly from HMRC or speak with a qualified adviser before making large contributions.
Conclusion: The Slow Money Way
Saving and investing for your child’s education isn’t about perfection. It isn’t about covering the full £57,000–£65,000 cost of a degree, or somehow insulating your child completely from debt. That kind of thinking paralyses parents into doing nothing.
The Slow Money philosophy asks you to think differently. It says:
Every pound matters. £25/month won’t pay for everything, but it might mean your child doesn’t need to take an overdraft. It might mean they can afford books without stress.
Habits compound as powerfully as money. When your child sees you saving consistently, they learn that consistency is the secret to freedom.
You’re not just saving for costs — you’re saving for choices. With even a modest cushion, your child can choose to work less during term time, take an unpaid internship, or study abroad without fear.
Think of it like planting seeds. Some grow into fruit this year (a Junior ISA paying for first-year accommodation). Some grow into trees that provide shade for decades (a Child SIPP maturing into a pension). Each contribution, no matter how small, is part of a bigger ecosystem that sustains your child’s financial life.
And remember: you’re not alone. Tools like JISAs, LISAs, and award-winning apps such as Moneyfarm, GoHenry, Snoop, InvestEngine, Moneybox, and Chip exist to make this easier. Your role is not to be perfect. Your role is to begin, and to keep going.
When your child turns 18 and you hand them the keys to a savings or investment account — however big or small — you’re not just giving them money. You’re giving them freedom, confidence, and a head start most never had. That is the Slow Money way: grounded, patient, generational.
Start Your Slow Money Journey
Don’t wait until you “have more.” Start with what you can today. Explore the Get Rich Slow Starter Toolkit™ — a practical companion for families who want to save and invest without overwhelm.
Here’s how to take your first step:
Open a Moneyfarm Junior ISA for steady, tax-free growth.
Teach money habits with GoHenry so your child grows confident alongside their savings.
Automate invisible savings with Chip.
Free up cash for contributions using Snoop.
Build long-term ETF portfolios with InvestEngine.
Use Moneybox to turn spare change into serious savings.
And if you want a bigger picture roadmap, read Unlocking Financial Freedom by Mel G Prosper — where the Prosper Path™ breaks down step by step how to build wealth slowly, securely, and sustainably.
Every journey starts with a single contribution. Make yours today.
© Slow Money Movement™ 2025. All content is provided for educational and informational purposes only and should not be considered financial advice. We are not financial advisers; please do your own research or consult a qualified professional before making financial decisions. Some posts contain affiliate links — if you choose to sign up or purchase through these, we may earn a commission at no extra cost to you. This helps support the site and allows us to continue providing free resources and content. We only recommend reputable platforms and products that align with our values of safe, grounded finance.