Cash LISA vs Stocks LISA (Most People Get This Wrong)

Number three Trap Cash LISA versus Stock and Shares Lisa A cash licer might feel safe for short period, but long term inflation erodes it. So Stock and shares ISA often makes better. I mean Stock and Shares LISA makes more sense long term if you understand the risk. Of course, if you are saving a deposit for your first term and looking to buy in the next couple of years, it doesn't make sense to put it in the Stock and shares isa. This is a short term goal. Okay, but you need to understand the risk of investing before you go invest now. Now here's an ISA most people completely miss or mess up even when they use it for their children. The Junior ISA. The Junior ISA is for children under 18 and parents or guidance can save or invest on their behalf. The annual allowance is £9,000, which is totally separate from your 20k ISA allowance. Now the key thing to understand is that the money comes into your child's control at 18 years of age. They can use it to do whatever they like. Yes, including buying the shiny new Ferrari or throwing a massive pat in Bali or whatever. Wherever is cool for 18 year olds these days. So this is not just about saving. You've got to teach your child as well about financial principles. Or if you're unsure about this, think twice about a Junior Isaac.