We started investing for our first daughter when she was born and the account has grown 72.66% in five years, writes LEE BOYCE

Last month, my wife and I welcomed baby Boyce number two; It’s been a happy few weeks and we feel incredibly blessed.

Amid the endless diaper changes and snuggle frenzy, one of our priorities is opening an investment account for our second daughter.

When our first daughter was born at the end of 2018, we managed to get the Isa, stocks and shares, up and running for her a few months later.

We started with £1,000 in savings and since then we have both built up £75 a month in the form of a direct debit that is automatically invested, with occasional lump sums coming from birthday money received from generous relatives.

The result so far? Well, the account with DIY investment platform Vanguard has returned 72.66 percent. We have already accumulated £15,347 savings, of which £4,182 is investment returns.

I expect that in five years’ time (i.e. after 10 years of investment) that sum will be between £35,000 and £40,000, given the current trajectory, although of course investment returns are not guaranteed.

I then expect it to hit the £75,000 mark in year 15 and then £140,000 in year 20, with all sums calculated using This is Money’s Savings and Investment Compound Return Calculator.

The vast majority of that £140,000 will be investment returns, all from that £1,000 start and a payment of £75 a month from the two of us, or just £1,800 a year.

I visualize that pot as a little snowball on top of a steep hill that cascades down and grows as it does.

For daughter two, we are going to invest the same way with the same sums involved.

The hardest part is getting up, opening the account and getting started.

It’s easy to hesitate, especially when you have sleepless nights and priorities elsewhere, namely keeping a tiny human being alive.

But the only motivation I need (and I hope you can pass it on to you) is the mathematics mentioned above. And once payments automatically leave your account, all the hard work will be done for you.

Saving for children is beautiful because time is on your side. You know you have 18 years to play: a long-term investment horizon that can generate wonderful returns.

That’s why I think investing for children is much better than investing in a Junior Cash Isa or the popular Premium Bond option.

For daughter one, we have the Lifestrategy 100% Equity fund with Vanguard, which comes with a low 0.22 percent annual fee to invest worldwide. It also has a high risk rating, given the nature of the fund.

This doesn’t matter as much when you have a long-term investment horizon, such as saving for almost two decades for a child.

There will be years of losses, peaks and valleys. For two of the five years, our investment has shown losses.

In the first year, it was down 9.38 percent (which didn’t matter too much, given the small balance there). It would have been easy to panic at that moment, but we stayed calm and kept going.

In the fourth year (March 31, 2022 to March 31, 2023), it fell 0.31 percent.

But the second year recorded a return of 36.3 percent, the third year 11.97 percent and the fifth year 17.59 percent.

I’m saving into my own Isa allowance (I’ll never need £20,000) and it will be the same for my second daughter.

The main reason is control: your child can access a Junior Isa from the age of 18.

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In our circumstances, this fund will be used to directly pay for things like driving lessons and a car deposit, possible university training or even a house deposit, rather than being given to you in the form of a lump sum.

Whichever path you choose when it comes to saving for your child, just go ahead and get started. Having even a small amount of cash in early adulthood can be a huge help.

With £100 a month from the start and an annual interest or return of 5 per cent, you would give your child a pot of almost £35,000 by age 18; around £13,000 of that amount would be interest.

At a 10 per cent return, you’re talking about £60,000 and 15 per cent of £110,000. These seem unrealistic returns, but given our investment experience so far, they may be completely doable.

Don’t delay and give your child a financial boost that can make a big difference.