Martin Lewis, money saving expert, 45. has revealed how parents can save for their children on his programme The Money Saving Show.
Many parents wanted to know how to save for their futures and which accounts are the best.
From junior ISAs to savings account, Martin offers the advice for which is the best depending on how the savings are being made.
He explained: “If you’re giving them money to put in a junior ISA, remember when they’re 18 they can blow it when they want.
“Up to £4,128 can be put in junior ISAs a year.”
Speaking to young savers, he gave the best advice directly to them for how to save their money.
Martin explained: “You’re not paying tax on your savings unless you have a job.
“The very best children’s paying account is the Halifax Regular Saving account not a junior ISA if putting in up to £100 a month.”
It all depends on how to save, whether it s monthly or a lump sum.
Martin said: “For lump sums the best is the Santander 123 Mini account with monthly interest rates of 3 per cent up to £2,000.
“Any child over the age of 11 can have one up to the age of 18.”
Those with kids aged between seven and 16 probably have a child’s trust fund, which Martin explained, with new rules, means can easily “be moved into junior ISAs” which have better rates.
When asked if children can be taxed, Martin revealed: “Yes in the same way as adults, they can earn up to £11,500 before they can.
He stated: “With money given from a parent or legal guardian, the max interest is £100 per year per person.
“It is then taxed at the parents tax rate.”
Last weeks episode saw Martin reveal who to pay up to 50 per cent less for groceries at the supermarket.