Comment: A gift to last well beyond Christmas

But those of us with youngsters in the family know how the wrong gift on Christmas day can lead to tears and tantrums, rather than fun and laughter.

One way of avoiding that scenario is to think long term and invest for a child’s future. The Association of Investment Companies (AIC) says a contribution into an investment trust “has the potential to be life-changing”. And it doesn’t need to involve putting in large sums up front.

The AIC has done some research revealing that if a parent or grandparent had invested a one-off £1,000 in the average investment trust for a child 18 years ago, it would now be worth £4,600, equivalent to an annualised return of 8.8 per cent.

However, if they had put in £50 a month instead, their total investment of £10,800 over 18 years would now be worth an impressive £33,838. As the AIC says this is “a hefty pot that could help with a deposit on a first home, further education costs or buying a car”.

According to the AIC’s analysis, the top performing investment trust sector over the last 18 years is technology and technology innovation, with a total return of £19,493 for every £1,000 invested. This is followed by biotechnology and healthcare (£10,287), North America (£6,451), and Asia Pacific smaller companies (£6,340).

And it adds that saving within a Junior ISA is the best way to ensure that any income and capital gains remain tax-free, even after your child turns 18.Chatting about the importance of long-term investing might not be top of the list when it comes to conversations over Christmas dinner.

However, the younger ones might thank you when they realise they already have a savings pot that will, for example, contribute to getting on the housing ladder when they reach the age of longing for some independence.

And talking of buying property, the Financial Conduct Authority recently unveiled new plans that have been welcomed by consumers and the industry. It announced it will focus on four areas in its reforms to the mortgage market: first-time buyers and underserved consumers; later-life lending; innovation and disclosure, and protecting vulnerable consumers.

There is still work to be done – the regulator is to consult the public on proposed rule changes early next year, and aims to have the first rule changes in place later in 2026 – but this definitely sounds like a step in the right direction.

Happy festive season. Scotsman Money is back in January.