Parents have enough on their plates. As someone with an eldest who has just started school and a youngest who is under two years old, I now understand the level of stress and permanent state of frazzled that most parents live in.
Thinking about finances is far from the biggest priority. Yet millions of parents are on it. Data this week revealed that some £2.5bn was put into junior ISAs (JISA) in the 2024/25 tax year, up from £1.8bn the previous year, with some 1.6 million accounts being added to. The average amount added in 2025 increased to £1,570 per JISA.
Most of this goes to stocks and shares accounts, which make up almost two-thirds of all junior ISAs (61.7%).
Yet the message from experts this week remains that parents risk missing out on growth by putting their children’s money away in cash.
While this is correct, it shows a lack of understanding about how people actually view their savings and, crucially, misses the point: there are plenty of reasons why someone might have a junior cash ISA rather than a stocks and shares option.
I would argue that any parent who has taken the time to fill out all of the forms required to set up a junior ISA has done so with intent. It is not like they’re saving into a bank account. They have actively chosen to do this. The chances are, they have made a conscious decision not to invest.
Here are a couple that spring to mind. For starters, there are many parents who will be opening an account much later than they had planned. Financial advice dictates that investing is only for those with a long-term time horizon. This is typically viewed as at least five years.
So anyone opening an account after a child turns 13 years old might want to put their savings into a cash option (you could even extend this to 11 years old as children can take control of their JISA at 16, although they can’t remove money until they are 18).
Experts may point to the fact that a JISA rolls over into an ISA, so children can continue to invest for much longer than when they become legally an adult.
It’s true that there is no guarantee that children will spend their savings when they reach 18. But cast your mind back to when you were 18. Would you have sensibly invested it? Maybe, or maybe not. Regardless, it is fair for a parent to be concerned about this and to choose the safety of cash.
This same logic can apply to those parents who have been saving into a junior stocks and shares ISA. Parents who have invested as they are recommended to may decide to transfer to a cash option for the final few years to lock in the money and secure it. After all, a 50% drop the week before the child turns 18 would be heartbreaking.
Finally there are those who have no understanding of investing and have no interest in learning it. Life is hard and the stock market is a gamble. Is it one that works out over the long run more often than not? Sure. Is it right for everybody? No.
So yes, parents should most likely invest. But let’s not admonish or shame them for not. Chances are they’re spending more time worrying about packed lunches than packing a junior ISA with the right investments.
They should be applauded for getting started. If they invest, great. If they don’t, then that’s fine too. The important thing is that they are giving their children the best start they can.