If you have young kids, do you put money away each month for
Discussion
sidicks said:
I can only go by the content of your post...
Why don’t you try and explain what you actually mean, in a way that might actually add some value to the OP, rather than the vague / nonsensical statements in your original post?
Fair point. Why don’t you try and explain what you actually mean, in a way that might actually add some value to the OP, rather than the vague / nonsensical statements in your original post?
Edited by sidicks on Thursday 4th January 12:38
I was going along the lines of sticking in just a bank account will do nothing to be honest.
Avenues I am involved in include saving up for a buy to let which will happen next month. Don't laugh but I am heavily into crypto at the moment and also penny shares which have done me well also.
I also chose to go self employed as a contractor to try and generate as much cash as possible to help the kids along later in life.
I don't think even ISAs are decent nowadays. Then again I am fairly niave to them.
HannsG said:
Fair point.
I was going along the lines of sticking in just a bank account will do nothing to be honest.
Agreed. But most of the discussion has been about stocks and shares ISAs not cash ones.I was going along the lines of sticking in just a bank account will do nothing to be honest.
HannsG said:
Avenues I am involved in include saving up for a buy to let which will happen next month.
As above, the discussions on here are from people asking how best to save £25-£100 per month for their children - what sort of buy-to-let does that fund?HannsG said:
Don't laugh but I am heavily into crypto at the moment and also penny shares which have done me well also.
There’s a big difference between investing and punting!Crypto has a chance of making you considerable gains or losing your shirt, not the sort of risk that people on this thread tend to be looking for.
A small punt wouldn’t necessarily be inappropriate however, but I’d want a basket of Cryptocurrencies to diversify my risk.
HannsG said:
I also chose to go self employed as a contractor to try and generate as much cash as possible to help the kids along later in life.
Good for you, but not helpful for the OP!HannsG said:
I don't think even ISAs are decent nowadays. Then again I am fairly niave to them.
ISAs are just a wrapper. Why do you think they are not ‘decent’?BoRED S2upid said:
I think a lot of people on this thread are confusing a cash isa with very poor returns and a S&S Isa.
Or, more accurately, a lot of people are confusing a cash ISA (which has low returns because interest rates are low) and a S&S ISA (which can invests in range of underlying asset classes and where returns maybe higher or lower and are not guaranteed, but which may be expected to provide better returns over the long term.
drainbrain said:
When I was 18 my old man told me he'd been paying into a 20 year endowment since I was born whose proceeds I could have when it matured on one condition. Which was that I paid the last couple of years premiums. Wasn't for me, though I was grateful for the offer.
That sounds an insanely silly thing to have not done. What aren't you telling us?drainbrain said:
When I was 18 my old man told me he'd been paying into a 20 year endowment since I was born whose proceeds I could have when it matured on one condition. Which was that I paid the last couple of years premiums. Wasn't for me, though I was grateful for the offer.
What people often call an endowment, is actually an endowment assurance, which would pay out an amount on death within the term of the policy (the value of the ‘pot’ or a specific amount, if higher) or the value of the pot on maturity (again possibly subject to a minimum amount, independent of underlying performance).Great if you need the life cover, but obviously that is funded by part of your premium, so less of your money is invested for growth. Likewise, there is a cost to any investment guarantees, that you may not want to pay for.
All other things being equal therefore an ISA should get you a higher return at maturity, but without the life cover in the meantime.
£50 a month for each of my three into JISA and I try to get their grandparents to stick some in at birthdays and christmas. Invested in a 50/50 split of global equity trackers and decent managed global equity funds. We got the government CTF kicker to start them off and trasnferred to JISA after a couple of years.
Targetting £20k by they're 18 which they'll hopefully use well for education/house deposit or doing something life changing. Hopefully.
Targetting £20k by they're 18 which they'll hopefully use well for education/house deposit or doing something life changing. Hopefully.
FredClogs said:
£50 a month for each of my three into JISA and I try to get their grandparents to stick some in at birthdays and christmas. Invested in a 50/50 split of global equity trackers and decent managed global equity funds. We got the government CTF kicker to start them off and trasnferred to JISA after a couple of years.
Targetting £20k by they're 18 which they'll hopefully use well for education/house deposit or doing something life changing. Hopefully.
I sometimes feel I have failed in my parently duties by not making this kind of regular saving for ours. Targetting £20k by they're 18 which they'll hopefully use well for education/house deposit or doing something life changing. Hopefully.
But then I read comments about posters here wanting control in case their kids turn into untrustworthy little toads, and I am also pretty certain once they turn of age they own the ISA/<etc> - I suspect trust funds may be able to release at later dates, but I'm not in that territory.
Instead, we have continued to be 'prudent' and create our own savings - now ours are at Uni, we are able to help them, and should the need arise in the next 10 years, could probably lay my hands on the sum needed for a deposit to gift them.
For each of their cousins, we have given a £1,000 premium bond payment as an 18th birthday gift: one of them even had a win within a few months!
I am pretty happy the way ours are turning out - we did open them children's bank accounts when they were young (I think around 13) - Santander had (perhaps still has) a great one that could modify as they got older until they have student accounts - so they have built up an understanding of money - birthday money was deposited, and ultimately it gave them their own buffer when they went to Uni.
Equally, doing things like car boot sales with them was always good fun - again they learn the value of money and the enjoyment from earning it (even when it often drove me mad being offered 5p for something clearly worth a quid of anyones money!), before they were old enough for their own jobs! Ours were into scouting - lots of fund raising things and within DofE the ability to stretch them in many areas - make them feel valued. Daughter now has a CV that includes a short piece about things she has done to help raise funds for charity, from bikes rides to cake sales to events that gave her work experience - all done before the age of 18.
When it comes to Uni costs - make sure they understand the fees are not debt - they are a tax. I have read & heard of parents who have paid their tuition fees: given how perhaps 30-50% of students may never repay their fees, I don't see the point in clearing that for them - it is 'just' a tax on future earnings. I have plenty of views about how ludicrous I believe they are and how the Universities are ripping them off for the ~12 hours contact time they get, but that ain't something I can fix!
Ultimately I admire those parents who help make provision for their children, however they feel best: I suspect the biggest 'bang for buck' is spending time with them.
Go for walks, play games, go camping - heck, I took my now 21-year old lad wild camping last summer - first time since I was younger than him that I have done that! - things that don't cost loads, and YOUR TIME is the thing of biggest value to your kids - spend it wisely!
(sorry for the ramble!)
Badda said:
More fool them for allowing you too tbh.
It is an issue with JISAs that the money goes into an adult ISA at 18 in their name, so if your child/adult wants to blow it they can. My eldest is 10, i know now she won't but the other two I'm not sure.But they'll be 18, adults, hopefully they'll take guidance and precaution because I'll make it clear its all they'll get until I die.
Thanks for the help.
As a father my job is to do / provide the best I can for my kids. Yes there is that moral question where at 18 they pi55 the savings up the wall but I hope by then I've instilled some form of wisdom into them and that they use this money wisely ( with my guidance ) :-)
If they do drink it away, I will make sure I'm with them as it will be a tremendous session ! :-)
SBK
As a father my job is to do / provide the best I can for my kids. Yes there is that moral question where at 18 they pi55 the savings up the wall but I hope by then I've instilled some form of wisdom into them and that they use this money wisely ( with my guidance ) :-)
If they do drink it away, I will make sure I'm with them as it will be a tremendous session ! :-)
SBK
Interesting,
the money I have saved for my kids, I kept in my (and my wife's) name and put in ISAs funds (managed and trackers). Over the years some have done very well. I just keep a simple spreadsheet to identify which of the funds are "theirs".
Now at 18 and 21 they still aren't really aware of it and there is no way my son is getting it now to blow on a car. When the time comes - probably house purchase - they will get the pleasant surprise that they have a bit more saving than they realised.
IMHO 18 is too early for most kids.
If either of them makes their first million before they are 25, I suspect I will hang onto it and they'll never know.
the money I have saved for my kids, I kept in my (and my wife's) name and put in ISAs funds (managed and trackers). Over the years some have done very well. I just keep a simple spreadsheet to identify which of the funds are "theirs".
Now at 18 and 21 they still aren't really aware of it and there is no way my son is getting it now to blow on a car. When the time comes - probably house purchase - they will get the pleasant surprise that they have a bit more saving than they realised.
IMHO 18 is too early for most kids.
If either of them makes their first million before they are 25, I suspect I will hang onto it and they'll never know.
Edited by OverSteery on Friday 5th January 13:16
Badda said:
drainbrain said:
When I was 18 my old man told me he'd been paying into a 20 year endowment since I was born whose proceeds I could have when it matured on one condition. Which was that I paid the last couple of years premiums. Wasn't for me, though I was grateful for the offer.
That sounds an insanely silly thing to have not done. What aren't you telling us?Also I was never a saver and squandering his savings would have been a bit insulting.
Also paying endowment premiums wasn't in my 'gameplan'.
Years later when I became the parent it occurred to me that rather than create some wealth fund for my kid I could just increase my own wealth and give him some of it at whatever later point seemed appropriate. My version was raising and building a separate ltd coy property portfolio.
When later came he really didn't want it and gratefully refused it so I gave it to the wife instead.
Gassing Station | Finance | Top of Page | What's New | My Stuff