I’m not a parent yet, but I’ve started to think more about that stage of life. What it will look like, the responsibilities that come with it, and the kind of future I’d want my children to have.
A big part of it comes from my own experience. My parents saved for me, and it was truly life-changing. It gave me the opportunity to leave my home country and study in the UK at 18.
That decision shaped everything that followed: my education, my career, and the life I’ve built here. I’ll always be grateful that my parents gave me that foundation. This made me realise how powerful it can be to set money aside for a child.
What It Comes Down To
Money on its own doesn’t raise a child, but it does create space for opportunities.
Think about the world they’re growing up in. Housing is getting increasingly unaffordable, debt is common and job security is not what it used to be. Entering that world with nothing behind you feels daunting. Entering it with some financial backing makes it easier to focus on building a life, rather than scrambling to get by.
There’s also freedom in having choices. A pot built over the years could pay for university, a deposit on a first home, or even a gap year before starting work. It can also give the confidence to pursue a career that excites them, even if the starting salary isn’t amazing.
And beyond the money itself, there’s the lesson it teaches. By setting aside money
consistently, you’re showing them what it means to think long term, stay disciplined, and
prepare for the future. Those lessons last long after the balance itself is spent.
The Practical Side of Starting Early
The reason investing early is so effective comes down to time. History shows us that when money is invested over the long run, it grows. Then those returns can start to grow as well. This snowball effect, known as compounding, becomes more powerful the longer it’s left untouched.
Let’s look at a simple example. Imagine you put £1,000 into an account, and it grows by 8% over a year. At the end of that year, you’d have £1,080. The next year, you’re not just earning 8% on your original £1,000 – you’re earning it on £1,080. And as the years go by, this effect compounds, quietly building up.
- If you left that £1,000 for 18 years, it could grow to around £3,996.
- If you left it until your child was 60, it could become over £100,000!
That’s the magic of starting early and letting time do the heavy lifting. Even small, regular contributions can add up to something truly special by the time your child needs it.
I’ve used 8% because, for the last 20 years, the MSCI World Index (GBP) has delivered an average annual return of 8%. Investing puts your capital at risk. The value of investments can go down as well as up, and you may get back less than you put in. Historical performance isn’t a guarantee of future results.
Why This Matters More Today
Costs are higher for today’s young people than they were for previous generations.
Let’s consider education for starters. Tuition fees in the UK are £9,250 a year (source), not including living costs. As a result, many students graduate with tens of thousands in debt.
Then there’s housing. First-time buyers face deposits in the tens of thousands, which can take many years to save without support.
And finally, the rising cost of living makes it harder to manage after leaving home.
In this environment, even a small investment pot makes a difference. A young adult with
£10,000 to £20,000 behind them can focus on opportunities instead of feeling restricted by money.
The Worries Parents Often Have
When I talk to people about investing for their children, a few concerns come up again and again. The first thing is affordability: Many assume they need to contribute large sums for it to matter. Even £25 a month adds up over 18 years.
Then, a lot of parents are concerned about the lack of knowledge. Investing feels
complicated at first, but a simple global index fund is often all you need to get started.
And last is priorities. Parents worry about balancing their own goals with saving for their
children. And that’s fair, your emergency fund and retirement need attention too! Once those are in place, even small contributions for a child can have a huge impact.
Beyond The Numbers
When I look back on my own life, the money my parents set aside opened doors for me.
Without it, moving to the UK for university might not have been possible. With it, I was able to take a step that changed the course of my life.
That’s why I believe investing for a child matters so much. It can create options, it gives them resilience in a world that can feel overwhelming, and it passes down priceless money habits.
A Final Thought
Investing for a child’s future doesn’t have to be complicated or overwhelming. The key is to start, contribute what you can and stay consistent. Time will do the rest.
For me, this is one of the best ways to prepare the next generation for adulthood. It’s a way of saying: I want you to have choices and I want you to feel secure as you build your own life. My parents’ decision to save for me shaped my future.
Today, I teach others how to use investing to create the same kind of foundation for themselves and their children.
Investing puts your capital at risk. The value of investments can go down as well as up, and you may get back less than you put in. If you’re not sure whether an investment is right for you, it’s best to speak to a qualified financial adviser. Tax treatment is subject to individual circumstances and is liable to change.
Mia Wealth Limited (Mia Wealth) is an appointed representative of RiskSave Technologies Ltd, which is authorised and regulated by the Financial Conduct Authority (FRN 775330). Mia Wealth is a company registered in England and Wales (No. 15818371). Mia Wealth can be found on the Financial Conduct Authority Financial Services register under FRN 1033918. Our address is Fairbourne Drive, Atterbury Lakes, Milton Keynes, England, MK10 9R
