Giving money to a child is one of the most practical gifts you can offer — but it does not have to be a plain envelope of cash. Here are some ideas that make the gift more meaningful, more memorable, and more educational.
Open a Junior ISA
A Junior ISA (JISA) is a tax-free savings account for children under 18. You can contribute up to £9,000 per tax year. The child cannot access the money until they turn 18 — making it a genuine long-term gift. You can open a JISA in the child's name and invite family members to contribute.
The Savings Jar Challenge
Give a child a clear jar and a set amount of cash — then challenge them to save a matching amount before a set date. When they reach the target, you add your contribution. This turns a passive gift into an active savings challenge and teaches the value of delayed gratification.
A Money Book and Cash Combo
Pair a cash gift with an age-appropriate book about money. For younger children, picture books about saving and spending work well. For teenagers, a book on personal finance or investing can be genuinely life-changing. The book costs a few pounds; the knowledge it contains is priceless.
Whatever form your gift takes, the most important thing is the conversation that goes with it. Talking to children about money — what it is, how it works, and why saving matters — is the greatest financial gift of all.
The Tax Side of Gifting
If you are making regular or larger gifts to children, it is worth understanding the inheritance tax implications. Our guide to the tax implications of gifting money to children covers the annual exemption, the 7-year rule, Junior ISAs, and trusts — everything you need to gift tax-efficiently.