Becks Nunn, a financial expert at Fidelity International, said three in five (61%) of UK adults want to help their children or grandchildren achieve financial stability.

Parents and grandparents are being reminded how they can legally contribute £243,000 tax-free to their children’s future. Becks Nunn, a financial expert at Fidelity International, said three in five (61%) of UK adults want to help their children or grandchildren achieve financial stability.

Yet one in five (19%) are worried they may not be able to afford to. She said: “Back in 2008, my eldest child was the lucky recipient of a £250 voucher from the government as part of The Child Trust Fund savings scheme.

“This scheme ended on January 2, 2011. Since then, the onus has been on parents, as well as grandparents and other close relatives, to think about the financial security of the children in their care.”

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She said a parent or grandparent who can invest the full Junior ISA allowance of £9,000 per year, or £750 each month, based on 5% annual growth, has the potential to turn into a whopping £243,561.40 once they turn 18.

The expert added: “Of course, for most of us, that’s not affordable – even with loved ones chipping in. But let’s say you could afford to put away £55.50 a month in a Junior ISA which isn’t much more than a cinema trip for two, including snacks.

“That still has the potential to turn into £18,024 by the time the child turns 18 – assuming a modest annual growth rate of 5% (which isn’t guaranteed). That’s a pretty healthy nest egg by any standards.”

“When the child turns 18, the money is theirs. They can either invest in what matters to them or use it. And while only a parent or guardian can open a junior account for the child, anyone can pay into one. Great news for grandparents, aunts, uncles and godparents if they want to gift money for birthdays and Christmas.”

With Fidelity, you can invest up to £9,000 a year for a child’s future, starting from as little as £25 a month or a £100 lump sum, and pay no UK tax on any earnings. The child can access the money when they reach 18.