Saving for the future could get your child their own home

November sees the launch of the new Junior ISA scheme, with Confused.com urging parents to save now and they could have enough to buy their child their first home by the time they reach 18.

The Junior ISA is a tax-free savings account for children and is designed to replace Child Trust Funds (CTF) and will enable parents to save up to £3,600 a year tax-free for their children.

Due to the ever rising cost of university fee's and the unpredictable housing market, many families today will simply not be able to afford to put their children through further education after leaving school or even afford to help save up a deposit for their very first home.

But with a Junior ISA Account, you can give your child the opportunity of tax free savings as children, helping secure their financial future when they become adults as once you invest in the ISA, the funds become locked in until the child reaches 18. Until then, as the parent, you have full rights to move the ISA around to different accounts, to get the best rate of interest.

With an interest rate of 6% and paying in £300 a month, at the end of the 18 years term you could have saved over £116,000. This could provide a secure financial future for your child and in many areas in the UK this amount of money could buy your child a home.

With many first time buyers struggling to get a home the Junior ISA could be a life line to many.

Chris Griffiths Head of Savings at Confused.com says "We all know saving for your child's future is important as it can really make a difference as they enter adult life.  Even putting aside a small amount each month will soon mount up to a sizeable sum by the time they're 18, when it can really help open doors by providing the finances to fund things like their first car, a house deposit, university fees or gap years abroad."

"Consider the different accounts available and weigh up what is the right choice for you and then shop around on comparison sites to find the best interest rates available. Set up a regular payment if you can to keep the pot growing and remember to check the market each year to ensure you still are getting as a good return on their savings as you can, transferring the account if it will earn more elsewhere".