If you have young kids, do you put money away each month for

[Too Late]

Hi all

We have a 2 year old and since birth have put £100 away each month for him. With another baby expected in May this year and kicking off another £100 saving per month, if we should be increasing it or not.


What do other put away for their kids if anything at all?

[sbk1972]

Great Thread, one I will be watching. My situation is as follows and relates to your question too.

II have two kids, 6 and 8. 8 year old has some default bank account / trust that was setup for him by the Govn when he was born. They gave him £200. This feature then stopped so my 6 year never got this although my Mrs created something that I can't quite understand what it is when Ive asked her 10 times to explain, women !!!

So, Im now considering creating two new accounts. Can I therefore create two standard bank accounts for them ? I want to set up two accounts that I can then pump money in monthly. Is this doable ? Or Is there min age for bank accounts ?

Or should I look at ISAs ?

SBK ?

[Craikeybaby]

I put roughly 1% of my take home pay into a fund in my S&S ISA for my son. My wife puts similar into a regular savings account for him.

[covmutley]

No. They are already richer than me, that isn't hard though!

[Dan_1981]

Small amount per month into a stocks & shares ISA saving thingy that they get when they're 18. To piss up the wall.

[C0ffin D0dger]

Sweet FA a the moment, with my wife working as a full time Mum at the moment we don't have much to spare each month. Don't think my parents saved for me either though I did get money for accomodation and food when I went to Uni. I had summer jobs for beer money.

[Legend83]

3 children under 10 - I tuck £25 each away into Junior S&S ISAs. They have cash ISAs from lump sums given by relatives at birth.

Planning on stopping this soon and putting the £75 into a S&S ISA in my name so that when they come of age, that part of their empire is under my control!

[FarmyardPants]

2 kids (11 and 14), we've put £100/month into each of their funds since birth. Govt added an initial sum (£500? Can't remember) for the first one but less for kid2. Older daughter's is ~21K now, not exactly stellar growth but better than bank interest I suppose.

[BobSaunders]

Maximum cash ISA per year.

I'll apply to the courts to manage their affairs at 17.5 under the Mental Capacity Act Code of Practice if they are right little druggy sh*ts.

[Too Late]

Interesting

We just put some money into a bank account, no ISA or shares yet. Might be worth thinking about!

[Croutons]

If you have a lot in basic bank accounts, beware than any interest earned over £100 on a kid's account must be declared, and is effectively added to the amount you've made in interest against your personal savings allowance.

And if you're a higher rate tax payer that's only £500/ year, and a PH Director paying the additional rate, that's £0. Which may mean interest becomes taxable.

https://www.gov.uk/savings-for-children

[williaa68]

FarmyardPants said:

2 kids (11 and 14), we've put £100/month into each of their funds since birth. Govt added an initial sum (£500? Can't remember) for the first one but less for kid2. Older daughter's is ~21K now, not exactly stellar growth but better than bank interest I suppose.

Very similar, kids 15 and 13 been saving £100 a month since they were 2 and 4 into foreign and colonial investment trust via their children’s investment plan for one and ctf which became junior isa for the other. Current value just over £25k so close to paying the uni fees.....

[Butter Face]

We do the same, both my wife and I pay into a junior ISA and my gran pays some in too. We add in any Christmas money etc to top it up.

Hoping it will be a nice find when she’s 18 to get her on the property ladder/pay for uni if she decides that!

[paolow]

£100 per month gets put into managed funds / shares in an ISA in my name (I have no ISA or similar of my own)

That way I still have the keys to it if something terrible happens or they cant be trusted - but if it all goes well compound interest over 18 years means a nice head start when they need it and we can pick and choose what it goes on.

Probably wont ever mention the fund exists - just use it for the inevitable BOMD requests for uni fees or house deposit...

[Badda]

I pay in £100 a month into my two's accounts + gifts. Got half the uni fees in already, for both, and they've only just started school so loads of time left.

[sbk1972]

Great replies guys.

So, to summarise, if I create two bank accounts and start putting money into those then Im hit with tax ( Im a high tax payer ), yes ? Therefore I need to get to Junior ISAs and start putting £100 a month into those. Correct ?

Any suggestion on the best types ? Can I create these online ? I would like to set this up today, get my standing orders in place and put this matter to bed :-)

SBK

[Butter Face]

Yes you can set up online, do the DD online and off you go.,

Junior ISA is the best tax free way to do it IMO. You can put just over 4k a year into one if you wish.

[sbk1972]

Cool.

Do this ISA remain the same i.e. if I create them they will need to last for 14 years ( until both are 18 ). Do I fill them up, then create new ones in years to come ? Do I need to manage them ? i.e. move then around to different providers to get better interest ?

Which are the better Junior ISAs to use ?

Forgive the financial ignorance.

SBK

[alorotom]

We use accounts with the Bank of India, was a pain to setup as was all paper based and not online so involved postage back/forth but once setup it’s been great

Much better rates than U.K. banks and ISAs as well

[Butter Face]

sbk1972 said:

Cool.

Do this ISA remain the same i.e. if I create them they will need to last for 14 years ( until both are 18 ). Do I fill them up, then create new ones in years to come ? Do I need to manage them ? i.e. move then around to different providers to get better interest ?

Which are the better Junior ISAs to use ?

Forgive the financial ignorance.

SBK

They last until they are 18, and normally you can't make any withdrawals until that point either so the money is in there for good!

I don't know about moving them around etc, I have taken one with my own back (Lloyds) for my daughter and will likely leave it there and 'forget' about it for another 15 years or so!