Junior Isas could help parents save for childrens’ weddings

A Junior Individual Savings Account (Isa) could be an option for parents thinking about saving up for their childrens' futures.

These savings accounts are set to be launched in November this year and children under the age of 18 will be able to have both a cash and stocks and shares Isa in their names.

Parents will be able to invest a total of £3,000 into each Isa every financial year and enjoy tax-free interest on their savings.

These accounts cannot be accessed until a child reaches the age of 18, meaning a substantial amount could be saved.

This money could then be used to pay for university, a deposit on a house or a wedding.

A new report by Family Investments calculated that parents need to save £50 a month for 18 years to reach £18,000, which is the average cost of a wedding in the UK.

In order to save £10,000 to put towards a wedding, parents need to save £30 a month for 18 years.

Kate Moore, head of savings and investments at the firm, said: "With such a substantial cost to meet, parents looking to lend a hand will need to save regularly over many years if they wish to keep the cost manageable.

"Whether it's university tuition fees, a deposit for a first home or even a dream wedding that is needed, it's vital that parents start early and save little and often to accrue a sum that will give their child a helpful start to adult life."

Therefore, a Junior Isa could be an option for parents who want to help their children pay for their wedding in the future.

A recent report by R3 found that the average newlywed will take three years to pay off their wedding bill, as some resort to borrowing money through a credit card or loan.
 

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