What is a Sustainable JISA, and How Does it Work?
A Junior Individual Savings Account (JISA) is a tax-efficient savings account designed to help parents and guardians save for their child’s future. When choosing to invest in a Stocks and Shares Junior ISA you may have a choice of funds, therefore by choosing a sustainable fund will allow you to save towards your child’s future while considering the environmental and social impact of the companies that positively impact the environment and society.
All JISAs, whether they are cash or stocks and shares and invest in a sustainable fund, allows you to save up to £9,000 per tax year for each child under 18. The money in the account grows free of tax, and your child can access the money when they turn 18.
If a company offers a Junior ISA that can be invested in a sustainable fund, this means the investments will meet specific environmental, social, and governance (ESG) criteriaat the same time as considering financial return. ESG criteria might include an organisation’s carbon footprint, how they treat their workers, or their governance practices. This can help drive positive change now and for the future.
Benefits of a Sustainable JISA for Your Child’s Future
If you are looking for a Sustainable Junior Individual Savings Account (JISA) Foresters Financial have introduced a new fund for their Junior ISA that has a focus on sustainability, which aims to have a positive effect on people and the planet.
Here are some of the key benefits:
- Tax-free savings: JISAs provide tax-efficient savings, which means your child can access the funds when they turn 18 without paying UK tax on the growth.
- Investing in a sustainable future: By investing in a Sustainable JISA or a sustainable fund, you can support companies committed to positively impacting the environment. This can help to create a better world for your child to inherit.
- Education about responsible investing: By investing Sustainably for your child, you can also educate them about responsible investing and supporting companies committed to creating positive change along with the importance of saving for the future.
Managing Your Sustainable JISA: Tips and Best Practices
Here are some tips for investing in a Junior ISA:
- Set clear financial goals: Before opening a JISA, defining your financial goals for your child’s future is essential. This may include saving for education, a deposit for their first home, or a first car.
- Set investment type goals: If you are looking to invest sustainably do your research on specific sustainable products and companies offering sustainable funds. The funds aims and outcomes for the planet will differ between product/fund.
- Review your investments regularly: Regularly reviewing the JISA investments can help ensure they align with your values and financial goals.
- Maximise your contributions: To maximise the benefits of a JISA, it’s important to contribute as much as possible each year. Review your budget and financial goals to determine how much you can contribute, and consider setting up automatic contributions to make saving easier.
- Understand the fees: JISA providers may charge fees, such as an annual management fee or transaction fees. Be sure to understand these fees and how any potential impact your overall returns.
Conclusion: Investing in Your Child’s Future and a Better World with a Sustainable JISA
When choosing a Sustainable JISA or a Junior ISA provider that offers sustainable investments, consider their investment strategies, fees and type of fund. And when managing your child’s savings, set clear financial goals, regularly review your investments and maximise your contributions where possible.
Investing in your child’s future and a better world is an intelligent financial decision that can have a lasting impact. By aligning your values with your investments, you can help create a more sustainable and equitable future for future generations.