'Modest' amount parents and grandparents can put away to make their child a millionaire

A girl with her pocket money
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Helping your child to become a millionaire is "more achievable than you think" with thousands already amassing £98,000 before their 18th birthday. By contributing the maximum £9,000 annually to a Junior ISA from birth, a child or grandchild could accumulate over £255,000 by the time they turn 18, according to recent figures.

Hargreaves Lansdown has calculated that continuing with an annual contribution of £5,000 to their ISA could see them hit the £1 million mark by age 43. Similarly, if £3,600 per year is put into a Junior SIPP, they could be looking at a pension pot close to £98,000 by 18.

Rob Burgeman from RBC Brewin Dolphin commented: "A more modest pot of £50,000-£100,000 will certainly be within the reach of many. Starting at birth, a £50,000 pot could be built by the child's 18th birthday on contributions of roughly £150-a-month, assuming annualised returns of five per cent after charges."

"Increase the contribution to £300-a-month, and the junior Isa will be looking at a windfall of around £100,000."

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, added: "Becoming a millionaire may feel like an impossible dream for most of us, but if you can start people off early on their investment journey, it's more achievable than you might think.", reports Birmingham Live.

"Junior ISAs and SIPPs are a great way to help build the financial resilience of a child or grandchild, with the combination of regular contributions and long-term investment growth building a firm foundation upon which they can build as they get older."

"Starting your loved one's savings journey early gives them an enormous advantage over the long-term. The increased time in the market can really pay off. It can also act as an important early lesson in the power of investment in making the most of their money."

"Watching their money grow over time can boost their confidence and spark a lifelong interest in investing."