Teaching children about money can be invaluable to help them develop their financial literacy and build confidence around the subject of money. It can also have a wider impact on their understanding of self-discipline and developing their sense of responsibility.
But how could regularly saving help parents provide their children with a strong financial start to their adulthood? And can doing so help with teaching our children about the importance of money and managing their personal finances as they get older?
Below, we’ve outlined how much children could have saved up in a Junior ISA by the age of 18 if they add their pocket money into it each week, as well as how much they could have saved if parents put away £10 per week into the account. Within this, we have accounted for predicted yearly inflation rates as well as average Junior ISA interest rates to reveal how much a child could save by the time they turn 18.*
We’ve also surveyed parents with a Shepherds Friendly Junior ISA to delve into their habits when it comes to putting money aside for their children’s future, and whether they believe it has had an impact on their child’s understanding of money topics.
*Please note inflation predictions have been used, however the reality may differ depending on economic circumstances. The figures in this article are to be used as a guide only.
A child could have £4,115 saved up by the age of 18 if they save their weekly pocket money into a Junior ISA
Whilst there is no right or wrong age to start giving your child pocket money, research has shown that many parents will start to provide their children with a weekly allowance by the age of six. The amount of pocket money parents give their children often increases with age, however again there is no right or wrong when it comes to how much you give your child.
To help determine how much a child could have saved up by the age of 18 into a Junior ISA by saving their pocket money, we’ve used data from Statista showing how much pocket money children from the ages of six to 17 receive on average each week. We’ve then calculated how much a child aged six years old in 2025 could have saved up by the time they reach the age of 18 in 2036, taking into account inflation rates within this total, as well as earnings from average Junior ISA interest rates.
We’ve calculated that a six-year-old child in 2025 could have £4,114.79 saved up in their Junior ISA by the time they reach 18 in 2036, just by saving their weekly pocket money.
Broken down, this is £3,242.54 without interest, however we’ve calculated that Junior ISA users could have an additional £872.25 on top of this as a result of earnings from interest. We’ve taken this to be 4.6% which is an average of ourannual Junior ISA bonus rate, as well as various competitors. This highlights the benefit of putting aside money in an interest-based account and how doing so can have a crucial role in the growth generated.
| Age | Pocket money per year with inflation | Without growth | With 4.6% growth (including compound interest year-on-year) |
|---|---|---|---|
| 6 | £146.15 | £146.15 | £152.88 |
| 7 | £151.50 | £297.65 | £318.38 |
| 8 | £164.57 | £462.23 | £505.17 |
| 9 | £177.08 | £639.31 | £713.63 |
| 10 | £189.98 | £829.29 | £945.18 |
| 11 | £215.64 | £1,044.93 | £1,214.22 |
| 12 | £244.58 | £1,289.51 | £1,525.90 |
| 13 | £274.51 | £1,564.02 | £1,883.23 |
| 14 | £315.39 | £1,879.41 | £2,299.76 |
| 15 | £360.82 | £2,240.23 | £2,782.96 |
| 16 | £446.60 | £2,686.83 | £3,378.12 |
| 17 | £555.72 | £3,242.54 | £4,114.79 |
Teaching children about the value of money from an early age can help to encourage healthy spending and saving habits as they get older. To help achieve this, some parents might opt to encourage their younger children to save at least part of their weekly allowance for items they might want in the future.
Naturally, many children will quite rightly want to spend some of their pocket money on fun things like sweets and toys, especially when they’re younger. However, our study aims to show that investing even a small amount of money each week into a Junior ISA can help prepare children financially for adulthood.
It’s important to note that only parents or legal guardians can open a Junior ISA on behalf of a child. From the age of 16, parents can choose to give their child access to the account, but they can only pay into it, not take money out of it. Once the child reaches 18, they can take money out of it and spend it however they wish.
Putting £10 a week into a Junior ISA for a child from their birth could accumulate £12,392 by the time they reach 18
Parents may wish to contribute to their child’s Junior ISA outside of pocket money allowances, helping to provide their child with a strong financial start once they reach adulthood. The amount parents are able to put aside per week or month will vary from household to household, but for this study we have calculated how much can be saved by putting away £10 a week, or £40 a month, into a Junior ISA.
We have calculated this for a newborn baby in 2025, up until they turn 18 in 2042. Again, we have taken into account inflation rates and Junior ISA interest earnings (4.6% each year) over the course of these 18 years.
If parents wished to save £10 a week outside of a Junior ISA, they could still save an impressive £11,358.42 saved over the course of 18 years. However, investing into a Junior ISA can add £1,033.85 on to that total as a result of interest earnings, amounting to £12,392.28 in total by the time their child reaches 18. Again, this highlights the value of putting aside money in an interest-based account for long term growth.
A year of putting £10 a week into a Junior ISA would accumulate a pot of £555.92 by the end of 2025 alone. By the time your child starts high school at the age of 11, you may have already saved £7,477.98 with interest included.
Our research shows that putting money aside into a Junior ISA throughout a child’s childhood could help pay for important things such as driving lessons, or even their first car. When a child gains access to the account at the age of 18, they could continue saving if their goal is a deposit for a first home, or they could use it to supplement their university living costs. However they choose to use it, our calculation aims to show just how beneficial Junior ISAs can be in helping to financially support our children as they reach adulthood.
Another one of the benefits of a Junior ISA is that the child can’t access the money until they are 18, and withdrawals can only be made before the child is 18 if the account is being closed, or in exceptional circumstances. This helps to ensure that the money being put aside by parents/guardians is protected for their child’s future.
Why do parents open a Junior ISA for their child, and do they think it’s beneficial for helping them to learn about the value of money?
To understand the current saving behaviours of parents when it comes to Junior ISAs, we surveyed 325 parents with a Junior ISA at Shepherds Friendly on why they opened up an account, and whether this has helped their children learn more about money.
Almost a third of parents are using a Junior ISA to help fund further education
Life milestones have become more expensive over the previous decade. For example, the average price for properties bought by first time buyers in 2015 was £219,000, however in 2023 this increased to £238,000. With the cost of everyday items also increasing dramatically in recent years, many parents are wanting to save for their children’s future to help prepare them for such costs.
Over half of the parents surveyed (55%) said that they opened a Junior ISA to help their child have a nest egg for the future for general life expenses. However, the more specific reasons were to save towards the child’s further education (32%) and saving towards their child’s future first home (28%).
The frequency of depositing money into a Junior ISA to help save for these life milestones differs for every parent, but the majority (86%) choose to do so monthly. The consistency of deposits can help to clearly envision any saving goals and plan how long each goal would take. However, 7% of parents choose to only deposit through occasional one-offs. These forms of deposits may include large sums such as inheritance, so it’s worth remembering that the maximum amount you can put into a Junior ISA is currently £9,000 per tax year.
Almost a third of parents think having a Junior ISA has helped their child learn more about the value of money, however just under a quarter plan to keep the existence of it a secret
A Junior ISA can be a brilliant way to teach your child the value of money, and almost half of parents (48%) will be transparent with their child regarding the account. For those that do involve their child throughout their younger years, 32% of parents believe that the JISA has helped their child learn more about money and the value it holds.
However, almost a quarter of parents (22%) prefer to keep the pot of money a surprise for when their child turns 18. There is no right or wrong approach, but there are certainly benefits in including your children during the financial process.
If you decide not to tell your child about their Junior ISA, there are other ways to help teach them about the value of money. For example, getting them involved in activities like the weekly food shop to enable them to see how much everyday essentials really cost.
Over half of parents give their children chores to help them learn about the importance of money
Just under half of parents (46%) say that they’re always encouraging their child to save money for the future. The most utilised method to teach children the value of money, used by 62% of parents, is to help them distinguish between wants and needs. Other methods of teaching the importance of finances include giving chores to earn pocket money (54%), teaching them about the running costs of the household (41%), and having a physical savings jar (31%).
| Method for teaching children about the value of money | Percentage of parents that do this |
|---|---|
| Helping them distinguish between want and need | 62% |
| Teaching them about what money is used for | 55% |
| Give them chores which they can earn pocket money for | 54% |
| Explain how money is earned | 53% |
| Compare the prices of items they want (e.g. clothes, toys) to help them make good financial decisions | 44% |
| Teach them about the cost of running the household (e.g. bills and food shopping) | 41% |
| Have a savings jar | 31% |
| Show them how I spend money as an adult | 30% |
| Teach them about physical cash | 27% |
| Teach them about different types of payment methods (e.g. credit cards, mobile phone payments, etc.) | 27% |
There are many ways to teach children about the value of money, so it’s about finding what works for you and your child. Methods can also vary depending on their age with saving jars perhaps being a better visual aid for younger children, whilst teaching them about credit cards might be a more suitable lesson for older children.
A quarter of children ask their parents to save their pocket money into a Junior ISA on their behalf
A child’s level of involvement in their Junior ISA is restricted due to the parents managing it, but a child can still make requests to be made on their behalf. For example, a quarter of children who know about the existence of their Junior ISA have asked their parents to invest their pocket money into the account at some point. However, only 6% ask for this all the time, and 26% never do so.
Meanwhile 26% of children have asked their parents at some point to save money they’ve received as a Christmas gift, or earnings from a part-time job, into their Junior ISA on their behalf.
The majority of parents believe that children should start learning about the value of money from the age of five or earlier
When we asked parents about the ideal age children should start learning about money, 31% agreed that it should be at the age of five or earlier. Around 18% said this should be at the age of six, the age we’ve calculated children receive pocket money from, and 14% believe children should start learning from the age of 10.
Just 1% of parents said children shouldn’t start to learn about the value of money until they are 18 years old. Leaving lessons about money until they reach 18 could make it more difficult for them to unlearn negative behaviours that they could take with them into adulthood. Even teaching them small lessons about the need to save for items they want at a younger age could help encourage positive behaviours as they get older.
How can parents help their children develop healthy money habits?
Encouraging children to develop healthy saving habits can set the foundation for their financial wellbeing in the future, but how can parents achieve this? Discussing money can sometimes feel complicated and daunting, however there are ways to turn lessons about money into something fun and engaging whilst teaching financial responsibility.
Graham Drummond, Head of Communications at Shepherds Friendly, and father of two young children, has provided their top tips on how to integrate lessons about money into everyday life, helping families to foster healthy habits and responsible spending:
1. Reward chores
Little chores here and there can show how money can be earned through helping out, aiding children in their ability to see the value in money and encouraging them to save their pennies. You can even help them to set saving goals, for example planning how many chores would be needed to buy something they want such as a new video game or the latest trending toy. Our survey found that 20% of parents currently help their children to set savings goals
2. Make saving visual
Making visual aids like charts or a money jar will help children to see how much they have accumulated and how far they are from any saving goals. You and your child can get creative with this and personalise visual aids with colours, stickers and drawings to keep the topic fun. This will also help to motivate further saving and make money a more tangible part of their lives.
3. Involve them in family budgeting
As your child gets older, it can be a good idea to get them involved in understanding the budget of the household, for example the weekly shop, to help teach financial responsibility with real life examples. By explaining the basics of everyday expenses and the concept of having a budget, your child can see how money works in the real world and how they can practise sensible spending behaviours.
Our survey showed that 41% of parents are getting their children involved in learning about the cost of running a household, and 23% get their children actively involved in decision making, suggesting many are seeing the benefits to relating money conversations to real life examples.
Graham Drummond, Head of Communications at Shepherds Friendly, adds “By instilling the values of saving up and budgeting early on, we can equip children with the essential skills to navigate financial challenges as adults. Not only does this help to empower them to make informed decisions, but it also encourages a sense of responsibility and self-discipline. With over half of UK households still reporting that their cost of living had increased in the last year, it’s more important than ever that we encourage financial habits for our children to take into the next generation and beyond. A key part of this is making learning about money fun and incorporating it into day-to-day life, to really build those positive money habits.”
Methodology
We took the average pocket money each child aged 6-17 receives as of 2024. We then worked out what this would be worth for that six-year-old child each year from the age of six in 2025 to the age of 18 in 2036 with predicted inflation also accounted for. We have done this using the prediction formula and ONS data on inflation, using data from 1989 to predict what inflation will be each year from 2025 up until 2036.
We then multiplied each yearly result by 52 to work out how much they get per year with inflation and totalled these to determine how much they’d have in total savings in a JISA, assuming they take nothing out.
We then added a 4.6% interest rate (created by averaging various Junior ISA providers AER, including Shepherds Friendly’s) to the yearly savings and have calculated what this will be year on year.
To find out about parental attitudes and behaviours when it comes to JISAs and teaching children to save, we also surveyed 325 parents that hold a Junior ISA for their child at Shepherds Friendly in October 2024.
