Cash has a clear role
Cash can be appropriate where access and stability matter. Check withdrawal restrictions, variable rates and any conditions attached to an account. The number on a statement may rise while its buying power falls if inflation is higher than the interest earned.
Investments can fall when you need them
Investing offers the possibility of growth but the value is uncertain. A goal more than five years away gives more time to consider investing; it does not guarantee a positive outcome. A market fall shortly before a planned withdrawal can matter even after many years of saving.
Think about both capacity and comfort
Capacity for loss is about the consequences of losing money. Comfort with risk is about how you feel when values fall. These are different questions. A family can feel comfortable taking risks but still be unable to afford a loss for an essential expense.
Use more than one scenario
In the calculator, try a negative return as well as zero and positive rates. Then increase fees and inflation. A smooth line is only a mathematical illustration. Real investments move unevenly, and the order of gains and losses can change the outcome when contributions or withdrawals occur.
Review as the goal approaches
An account suitable when a child is two may need another look when they are seventeen. Review the timeframe and purpose, not just recent performance. Ask a regulated adviser if you need help deciding what level of risk fits your family.
This guide explains general options, not what is right for your family. Investments can lose value. Tax rules and account terms can change. For personal recommendations, speak to a regulated financial adviser.
Sources & further reading
Core rules checked against the following sources on 28 October 2026. Check current terms before acting.
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