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Martin Lewis Urges Parents Of Teens To Do 1 Thing When They Turn 18

Martin Lewis Urges Parents Of Teens To Do 1 Thing When They Turn 18
Martin Lewis wants parents to open a Lifetime ISA for their kids once they hit 18.Martin Lewis has urged parents to open a Lifetime ISA for their teens once they turn 18, in order to help them get on the property ladder in the future.The money saving expert appeared on This Morning this week, telling parents they should put a £1 into a Lifetime ISA for their 18 and 19-year-olds because “you can put up to £4,000 in and the state adds a 25% bonus towards a first-time property”.So, if you put £4,000 in, you get £1,000 a year off the state. The expert caveated that you can only get this bonus if the account has been open for a year. So, he recommended putting £1 in once kids turn 18 to “start the clock ticking”.“You put £1 in, even if they don’t want to use it now, if they suddenly decide in two years [or] something’s happened that they can buy a house, they could then shove the £4,000 in and they’d get the £1,000 bonus straight away, rather than having to wait,” he added.What is a Lifetime ISA?A Lifetime ISA is a savings account available for people who want to buy their first home or save for later in life. You must be 18 or over, but under 40, to open one. You can put in up to £4,000 each tax year, until you’re 50, according to the government. The state will then add a 25% bonus to your savings, up to a maximum of £1,000 per year.When it comes to taking money out of the account, you can do so if you’re buying your first home, aged 60 or over, or terminally ill with less than 12 months to live.If you need to make a withdrawal outside of these terms, though, you’ll face a 25% charge. Some of the other downsides include the first-time home your child buys having to cost £450,000 or less to be able to use the money, and the value of the LISA being subject to change due to inflation or stock market fluctuation.Related...AIBU For Not Packing My Teens' And Husband's Suitcases For Holiday?WTF Does 'Crashing Out' Mean When Teens Say It?Teens Are 'Dusting' – And It's Not What You Think It Means

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