How to help your child become a millionaire

The millionaire strategy, which I personally use, aims to make my children millionaires when they are older. The strategy is built upon several key principles discussed in our How to Become a Millionaire podcast episode. This revolves around harnessing the power of compounding by contributing regularly to a tax-advantaged Junior ISA (JISA), until a child is aged 18 at which point they then take over the investment journey themselves. Most importantly of all it assumes you are starting from zero today. Here's how it works:

The 3-Step Strategy

• Start Small: You begin with a monthly contribution. This table shows the monthly contributions required each month, based on different assumed growth rates, in order to help your child become a millionaire when they come to retire (age 65).
• Let it Snowball: Through compounding in a JISA, your returns are reinvested to generate their own returns, creating powerful, accelerating growth over time.
• Supercharge the Growth: Here’s the secret to the millionaire strategy. By increasing your contribution by just 5% each year, you ensure the fund's future value isn't just protected from inflation - it's significantly boosted.

For example, an initial £56 a month from age 5, with a 5% increase each year, could create a fund worth over £2.2 million by retirement, assuming an 8% average annual return. Which is worth £680,000 in today's money. (Please note: annual rates of return are not guaranteed).

Making the Strategy Simple

We've partnered with Wealthify to make this plan easy to implement. They can send a simple reminder on your child's birthday to apply the 5% annual increase, keeping your strategy on track. In addition, you could earn £15-£100 cashback for your child if you open and then deposit or transfer a Junior ISA to Wealthify via the calculator below. This offer is for new customers only. Minimum investment £1,000. Offer registration ends 23/07/26. You’ll then have 6 months to make your qualifying deposit(s) or start your transfer(s). Cashback varies by total deposit and/or transfer amount. . Terms and conditions apply. Capital at risk. The tax treatment of your investment will depend on your individual circumstances and may change in the future.

See What Their Future Could Hold

Ready to see the potential? Use the calculator to estimate what your child's JISA could be worth by their 18th birthday.

After using the calculator, you can click through to set up their JISA in minutes, if it suits your needs.

*Disclaimer: With investing, your capital is at risk. This projection is an estimate and is not a reliable indicator of future performance. The value of your investment can go down as well as up. Tax treatment depends on individual circumstances and may change in the future.

Leadenhall Learning Limited (trading as Money to the Masses) is an appointed representative of Wealthify Limited which is authorised and regulated by the Financial Conduct Authority. Money to the Masses acts as an appointed representative for the purpose of promoting Wealthify products and introducing customers to Wealthify.

Passing on the Knowledge

The greatest gift you can give alongside this investment is knowledge. By showing your child how their fund is growing, you empower them with the financial literacy to continue the journey when they take control at age 18. Whether they use it for a house deposit or continue investing, you've given them the ultimate platform to build wealth