Setting up savings accounts for kids
Discussion
I will admit I know absolutely nothing about savings and investments accounts.
I was looking to start savings accounts for the 2 youngest and had thought if I put away £1k a year for each by the time they are 21 should have a nice sum as a bit of a helping hand towards their futures.
Interest is very low and someone had mentioned S&P 500 tracker or investment account but I don't really understand how these sort of things work or if its safe. Would anyone have any suggestions to a good way to do it so the funds compound, or generate a little interest?
Thanks and appreciate any advice.
I was looking to start savings accounts for the 2 youngest and had thought if I put away £1k a year for each by the time they are 21 should have a nice sum as a bit of a helping hand towards their futures.
Interest is very low and someone had mentioned S&P 500 tracker or investment account but I don't really understand how these sort of things work or if its safe. Would anyone have any suggestions to a good way to do it so the funds compound, or generate a little interest?
Thanks and appreciate any advice.
Lots of options but for me it came down to - do you want to cede access of the funds at 18? And have you maxed out your ISA allowances yourselves
If the answer is no to these then imho you’d be best off opening an ISA in your name (or your partner) and using this for the savings vehicle knowing that it is the fund for the kids.
If the answer is no to these then imho you’d be best off opening an ISA in your name (or your partner) and using this for the savings vehicle knowing that it is the fund for the kids.
I opened a JISA for my son when he was a few months old with wealthsimple. Continue to top it up every month and its doing pretty well so far. Once he is 18 it transfers to him and he can do what he wishes with it. Hopefully that will be toward a car/house or education fees whatever he decides to do with is life at that time. I will keep topping it up if he decides to sit on it for a little longer.
fat80b said:
Lots of options but for me it came down to - do you want to cede access of the funds at 18? And have you maxed out your ISA allowances yourselves
If the answer is no to these then imho you’d be best off opening an ISA in your name (or your partner) and using this for the savings vehicle knowing that it is the fund for the kids.
This is a good point I certainly think I would like to have it for them but allow myself to decide when they can have it rather than automatically just be given a lump sum at an age where they may, or may not have the maturity to use it wisely.If the answer is no to these then imho you’d be best off opening an ISA in your name (or your partner) and using this for the savings vehicle knowing that it is the fund for the kids.
I’m paying into my own S&S ISA at the moment for the kids and will likely transfer them a sum when they are old enough.
At this point in life I’d want the money to go towards a house deposit. When I and my cousins had inheritance 20 odd years ago, I kept mine for a house deposit of which I am still seeing the benefits today.
My cousins both went out and spent theirs on Renault Clios.
At this point in life I’d want the money to go towards a house deposit. When I and my cousins had inheritance 20 odd years ago, I kept mine for a house deposit of which I am still seeing the benefits today.
My cousins both went out and spent theirs on Renault Clios.
I went JISA for my 2, currently with H&L most in a vanguard fund and some in Shell and BP. Trying to put as much in as I can. Martin Lewis said it’s one of the best way to avoid inheritance tax at the moment. Ideally I would like to max it out every year to give them the best start in life.
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