How to save for your children or grandchildren

1 June 2026

You can’t predict their future. But you can help shape it.

From further education to a first home, a wedding, or a sudden opportunity, saving now could give your children or grandchildren, or other young family members options later. Options that matter, right when they need them most.

Because let’s be honest, life’s milestones don’t come cheap.

• The average wedding in 2026 costs £20,604 (according to Bridebook).
• The 2026 average first-time buyer deposit in England is £63,855 (says Unbiased).
• It typically costs £69,717 to complete a three-year degree at a UK university (Save the Student 2025 calculations).
• The average used car in 2026 costs £17,294 (reports Autotrader).

Okay, that’s enough numbers. They’re eye watering. And no, this isn’t all on you.

But one day, your child or grandchild may face costs like these. And if you’re able to help, even a little, it could mean the world to them.

The good news? Saving doesn’t have to be dramatic.

Small habits really do add up. And over time, they can make a big difference.

The power of saving regularly into a children’s savings account

You’ve got your own priorities. Bills to pay. Plans to juggle. It’s completely normal to focus on what’s right in front of you.

Saving for a child or grandchild can feel less urgent – important, yes, but easy to put off.

But making some kind of start is better than simply talking about it. The sooner you begin, the more time you give savings to grow into something meaningful. And for many people, regular saving over time works better than relying on a one off lump sum later on.

Here’s a simple example, ignoring things like interest and inflation.

• If you saved £100 a month for a two year old, it might not feel like much.
• But after one year, that’s £1,200.
• By the time they’re 12, you’ve set aside £12,000.
• And by 18, it would be £19,200.

And that’s before you even think about putting that money to work.

What are the best options for a kids savings account?

There are plenty of children’s savings accounts designed to help you save little and often, while earning interest over time.

They also give you choices around access. You might want your child involved from a certain age. Or you might prefer the money stays untouched until they’re an adult.

Here’s why many people choose a children’s savings account:

• A dedicated place to save

  It gives you a specific home for money intended for your child or grandchild, rather than folding it into your own savings.

• Made for small, regular contributions

  Most accounts allow regular deposits. You can usually set up a standing order so saving becomes part of your routine, much like a regular bill.

• Easy for family members to chip in

  Birthdays. Christmas. Milestones. Children’s accounts make it simple for other relatives to contribute when they want to.

• Build for whatever life brings

  You’re saving for them, not for one specific goal. That means the money can support whatever path they choose.

• Helps young people learn about managing money

  Children’s accounts aren’t just for big, far off milestones. They can also support everyday saving, helping children or grandchildren work towards things that matter to them now.

• A strong foundation to build on

  A children’s savings account may not be the only step you take, but starting one now can make a meaningful difference when it matters most.

And there’s another bonus: saving like this can be a great way to introduce children to money. You don’t need to keep it a secret. Talking about what you’re saving for – and why – helps them see how money grows, and how small, regular amounts can add up over time.

The more chances young people have to manage money – the ups and downs – the more confident and savvy they will hopefully become.

Can you use ISAs to save for children and grandchildren?

Yes – and there’s a great opportunity here for younger family members to pay less tax.

Alongside your £20,000 ISA allowance for the 2026/27 tax year, there’s a separate £9,000 Junior ISA allowance for each child.

That means you can save or invest up to £9,000 a year into a Junior ISA for them. Like adult ISAs, any interest or investment growth is free from tax. So more of their money stays theirs. Money is at risk when you invest.

A few things to know:

• Access is restricted

  A child can only access their Junior ISA on their 18th birthday, so it’s best suited to longer term goals.

• Not everyone can set up an account

  Only parents or a guardian with parental responsibility can open a Junior ISA (or the child themselves if they’re 16 or 17). Grandparents can absolutely contribute, but someone with parental responsibility needs to open it first.

There are Junior Cash ISAs and Junior Stocks and Shares ISAs. The £9,000 allowance can be split between the two if that suits your approach.

The best way to save for children

If you’d like support saving for your children or grandchildren, you don’t have to figure it out alone.

You can start by exploring our range of children’s savings accounts. They’re ready to open right now at your nearest branch or by post.

And if you’d like some personal guidance, you can book a My Money Review. It’s a friendly conversation with a savings specialist who’ll take the time to understand your situation and talk through your options.

It’s completely free.

Because good advice shouldn’t come with a price tag.