Big Issue backs Big Exchange Junior Isa to back companies doing good

A new Junior Isa which promises to invest children’s savings only into companies proven to be helping the planet and society has launched in time for Christmas. 

Parents can open the savings account through The Big Exchange, co-founded by the Big Issue Foundation, and invest from £25 a month on behalf of their child. 

It’s also possible to pay in lump sums of £100 up to the annual limit for a Jisa of £9,000. 

While the account must be opened and managed by a parent or guardian on behalf of a child under the age of 18, anyone can pay into it, making it possible to give to children sustainably for Christmas. 

There are 40 investment funds to choose from, all rated against the United Nations Sustainable Development Goals or ‘Global Goals’, which were adopted by world leaders in 2015 in a call to end poverty, fight inequality and injustice, and tackle climate change. 

Platform fees are low, at 0.25 per cent. This means that for every £100 you invest, you pay 25p in fees. There is also a fee payable to the manager running the fund you choose to invest in. This varies depending on who you go with, but typically ranges between 0.8 per cent and 1.8 per cent per year. 

Funds are rated using a medal system, designed to give a picture of how much positive impact each investment has, with gold having the highest ability to bring about social and environmental change. 

‘I talked to my 13-year-old son about what a Jisa is and why where he keeps his money matters,’ explains Jill Jackson, managing director of The Big Exchange. 

‘He said: “So mum, a Jisa should actually stand for Just Invest Sustainably, Adults.”

‘He totally got it. To him, using his money to help the planet rather than harm it is a no-brainer. 

‘Children will only know how powerful their money can be to do good if we tell them and help them to use that power. 

‘Once they reach 18, they can see what they have achieved – financially and for the planet – and the baton is passed to them to continue their investing journey.’

Nigel Kershaw OBE, chair of The Big Exchange and of The Big Issue Group, said parents opting to give a Jisa to their child could be ‘truly transformational in helping change the hearts and minds’ of millions of young people. 

‘When they reach 18 they will get their financial, environmental and social return,’ he said. 

‘They will not only reap the potential benefits of saving but also know that the financial system can work for them and in all that they believe in.’

The account can be opened and managed online, with a mobile app expected to launch in early 2021.  

Both the financial performance of their investment as well as its social and environmental impact will be available to monitor.

‘Whatever cause you and your child are most passionate about – from preserving wildlife and combating climate change to providing social housing for vulnerable people – with The Big Exchange you can help,’ said Jackson.