4 steps to take before your child can access their JISA

After years of diligently saving into a Junior ISA (JISA) for your child, handing them control of the account might feel daunting.

Will they appreciate your efforts and continue growing this fund to pay for something meaningful, such as university or their first home? Or might they splurge it all on something frivolous like extravagant holidays and clothes?

Taking the time to prepare your child for this responsibility could help them make informed decisions about managing their savings and investments.

Keep reading to learn how JISAs work and to discover four practical steps to take before your child accesses the account to help them make the most of their money.

How JISAs work and why they’re a powerful way to invest in your child’s future

A JISA is a tax-efficient account a parent or legal guardian can set up for a child under 18 who lives in the UK.

There are two types of JISA:

• Cash JISAs – These work like a standard cash savings account, but there is no tax to pay on any interest earned.
• Stocks and Shares JISAs – Any funds you contribute will be invested, and you won’t pay tax on any capital growth or dividends you receive.

In the 2026/27 tax year, you can contribute up to £9,000 to a JISA.

Your child can take control of the account when they’re 16, but they can’t withdraw any money until they turn 18.

A JISA is a powerful way to build a savings pot for your child because it offers tax-free growth, and funds have 18 years or more to benefit from compounding (earning interest on interest). As such, a JISA could give your child a valuable head start in adulthood.

4 practical steps to prepare your child for taking control of their JISA before they can access it

If you’re concerned about handing over the reins of your carefully nurtured JISA, here are four steps to consider taking before your child can access their account:

1. Talk to them about the goals you had when setting it up

Explaining your intentions could help your child see their JISA as a purposeful gift, rather than just a windfall. This might reduce the risk of them blowing the lot on an impulsive whim.

Perhaps you imagined the funds might be a meaningful contribution to university costs, a gap year, or a deposit on their first car. You might find these are goals you share with your child. If not, talking openly in this way may encourage them to think carefully about how to use their money in other ways.

Focusing on choices and options, rather than “rules”, allows your child to feel trusted and capable, making them more likely to engage thoughtfully with their JISA.

2. Listen to how they might want to use the money – and plan together

When your child turns 18, the account automatically matures and converts into an adult ISA in their name. They’re free to use the funds as they see fit, and your parental control legally ends.

Before this happens, try to move the conversation on from “my plans for you” to “our plan for achieving your goals”.

The first step towards achieving this – once you’ve explained why you set up the JISA – is to give your child a chance to explain how they want to use the money.

Try to resist the urge to correct them or disagree. Instead, work together to create a plan you’re both happy with, including achievable short-, medium-, and long-term goals.

3. Consider a gradual approach to handing over control

Start talking to your child about their JISA when they take control of the account at 16. This gives you two years to prepare before they can withdraw any money.

Show them the platform or app you use to manage the JISA and explain what they have in their account (funds, shares, cash, and so on). Teach them the difference between saving and investing and emphasise how they each serve a different purpose.

Over time, you might want to start letting them make small, supervised decisions, such as setting a monthly contribution amount if they have an income.

When they reach 18, you might agree to check in and review their account together for the first few months.

This gradual approach builds your child’s confidence and reduces the risk of impulsive decisions, while giving you peace of mind that they’ll take their responsibility seriously.

4. Demonstrate the value of leaving their JISA untouched

Emphasise that there’s no rush to spend the money when they turn 18 and that leaving their money invested is an important option to consider.

Real-life examples are a great way to highlight the potential benefits of leaving their JISA untouched.

Try using an online compounding calculator, such as this one from Aviva, to show how their current balance could grow over time with a modest, assumed interest rate (make it clear there are no guarantees). Contrast this with a scenario where they withdraw a large lump sum as soon as they turn 18.

This could encourage them to turn their inherited JISA into a lifelong habit of saving and investing.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.