Don’t spend it all at once!
02 March 2026You might remember telling your child not to spend it all at once when handing over their pocket money on the agreed day (usually Friday or Saturday) as they eagerly looked to the High Street to see what they could buy this week.
The importance of putting part of the money aside as savings for a later date, or for a larger purchase, might have been advised as part of the education process of understanding how money and money planning works. And this process and education never really ends.
Perhaps with other generations, such as a grandchildren and extended families, now within the fold, passing on thoughts of financial planning, and admittedly usually funds, has never been so important in looking after their futures. The bank of Mum and Dad has often extended out to the grandparents.
The standard gifting rules for inheritance tax purposes remain largely unchanged and these provide the opportunity to pass funds on to younger generations (more can be found on our website). However, the question posed by this blog is what they do with the funds when received? And this is where financial planning can really add value.
There are many opportunities for younger generations to save in a tax efficient manner, and one good example might be a Junior ISA up to £9,000. Pension contributions within limits can also add future value among various other options, such as Premium Bonds. The obvious advantages are putting some money aside for future use and using inheritance tax allowances where available, whilst also continuing to further the important financial planning education that you may have started all those years ago.
I am sure that any gifts made will not be used to rush to the High Street to buy this week’s sweets and records. However, some early financial planning for future savings now might add great value in understanding what can really be achieved with money in the long term.
Please speak to the team at Chapters Financial to discuss your needs and objectives for gifting and investing for other generations.
No individual advice is provided during the course of this blog
Keith Churchouse FPFS
Director
CFP Chartered FCSI
Chartered Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, Number: 402899
