Mr Chatterton Dickson said he would not be overly prescriptive about how the money is eventually spent.

“I would like it to go to something that will stand the test of time, and I don’t want him to blow it all on fast cars and fine wines. When he turns 18, he is legally allowed to do what he wants. If he were to use it to pay off debt for university studies, his first home or investing in his own start-up, that would be fine,” he said.

Long-time investor Nigel Savage, 71, from Cheshire, has set up a Junior Isa for his two-year-old grandson, Freddie. He plans to keep contributing the maximum £9,000 a year.

Mr Savage, who is retired, said it was a valuable tool to teach children important lessons about money.

“It is a good way to educate kids about how the world works, and compound interest. Especially when they reach the ages of seven to nine, they can start to appreciate the value of savings,” he said. “You can’t start too early on that process. Don’t wait until they are approaching 18 before you start to engage with them on the management. Otherwise it might be too late and they will blow it.”

However, investment strategies differ between his own Isa and the Junior Isa. “I don’t invest in the same way. Particularly when someone is as young as two, you can take a longer view and a slightly more measured risk. I’m an amateur, but I have done pretty well over the years,” he said.

Mr Savage said investing was like following football teams. He tries to back good managers with a clear strategy and a successful track record, such as Nick Train of the Finsbury Growth & Income Trust.

The average parent saving into a stocks and shares Junior Isa put away £1,180 in the 2019-20 tax year, according to HM Revenue and Customs.

Myron Jobson, of Interactive Investor, said the need for long-term saving for children had “never been greater”, as the cost of university spiralled and house prices continued to rise. “History shows that even a middle-of-the-pack fund is likely to compare favourably with cash. You don’t need to be an expert stock picker to benefit.”