Nomeda Mik is building up her savings for her two children(Image: Nomeda Mik)
A mum of two has shared how she is using her groceries shop to build up savings for her two children. Nomeda Mik, 33, is using shopping app Kaldi to get cashback from her regular food shop to pay into junior stocks and shares ISAs for her children. She gets around £10 a month in cashback which she then tops up to £20 to go into a investment pot for her five-year-old daughter.
She has also recently started adding £20 a month into a junior ISA for one-year-old son. The mum said: “I’m always looking for simple, practical ways to save for my children, especially with everyday costs increasing.
“What I like about Kaldi is that I can earn cashback on the spending I already do, and invest that towards their future. It’s a small, steady way to build something over time without changing my usual routine.”
She is currently putting the funds into the HSBC Islamic Global Equity Index Fund through the junior ISA, which potentially pays an annual return of between 7.57 percent and 11.49 percent. Just by investing £10 a month into her daughter’s saving pot, by the time her daughter turns 25 she could have between £8,500 and £15,500 saved up, thanks to compound interest.
This is despite the mum only paying in some £3,000 from her cashback from her shopping, without her having to pay in any of her income. Ms Mik said: “I’m giving my daughter a head start in life all without contributing a penny of my own money.”
You can deposit up to £9,000 each tax year into a junior ISA, for a child under the age of 18. Once the child turns 16, they will take control of the account, but they can’t make any withdrawals until the age of 18.
You can use the Kaldi app to get cashback towards your savings(Image: Getty)
Making investing accessible
You can use the Kaldi app to get cashback to be used to build investment-based savings at many different retailers. The app is available for shopping at Morrisons, Asda, M&S, Boots, Starbucks and Caffe Nero.
Mark Burgess Watson, CEO of Kaldi, said the app is intended to make investing “simple, accessible and genuinely rewarding for everyone – even if you’ve never invested before”. He said: “People like Nomeda show how powerful small, consistent actions can be over time.
“By turning everyday shopping into cashback that’s automatically invested, Kaldi helps users build long-term wealth without dipping into their own pockets. Traditional saving can feel slow, especially with inflation eating into returns, but investing gives your money the chance to grow faster through compounding.”