Fill your own ISA first

The new Junior ISAs are a waste of time. Now more than ever, parents should be looking to their own finances first before worrying about their kids'. Merryn Somerset Webb explains why.

The government wants you to save more. You might think that odd for two reasons. First because, if you are an average person, you are unlikely to have much extra to save. Sure your mortgage payments are lower than they were but what the financial crisis has given you with one hand, it is firmly ripping away with the other: high inflation is destroying the purchasing power of your net income.

And second because, if you watch the news at all, you will know about the paradox of thrift. If we all start saving at once, our horribly ill-balanced consumption based economy won't be able to cope: economic growth will continue to collapse and we will all end up worse off. Still, there is no accounting for the madness of state policy and so it is that, from November, you will be able to open a Junior Isa for your children (if they don't already have a child trust fund) and pile whatever pennies you can scrabble out of your purse at the end of every month into it (up to a limit of £3,600 a year). The returns both capital gain and income will then come tax-free.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.