Setting up Savings Accounts / investments for your children
Discussion
Hi
I want to start saving, investing for my children (8,10) and seeking advice.
They currently have some Government backed / shared saving ISA that was given to them when they were born. however, I now want to take this further and workout what I can do so that when 20/25 they have a sum to invest in property etc.
I suppose I could just open a bank account for each but the interest will be stupid.
Speaking to friends at work, several created pensions for their children, monthly pay into this. Are some have created mortgage based accounts.
Anyone here done similar ?
SBK
I want to start saving, investing for my children (8,10) and seeking advice.
They currently have some Government backed / shared saving ISA that was given to them when they were born. however, I now want to take this further and workout what I can do so that when 20/25 they have a sum to invest in property etc.
I suppose I could just open a bank account for each but the interest will be stupid.
Speaking to friends at work, several created pensions for their children, monthly pay into this. Are some have created mortgage based accounts.
Anyone here done similar ?
SBK
As with any investment it comes down to risk vs reward. I wanted a zero risk account for my daughter and the best I could find was a Coventry Building Society Junior Cash ISA, which came in at 3.6% AER. You can only put about £5000 a year into it though which may or may not be a problem depending on how much you want to save.
If you're willing to risk the money, you could get either a stocks and shares ISA or something like a pension but I think either risks losing some or all of the original pot if the stock market goes down. I assume if you start a pension they wont be able to withdraw the money until they retire, which is hardly ideal if the aim is to help them get their feet on the property ladder?
If you're willing to risk the money, you could get either a stocks and shares ISA or something like a pension but I think either risks losing some or all of the original pot if the stock market goes down. I assume if you start a pension they wont be able to withdraw the money until they retire, which is hardly ideal if the aim is to help them get their feet on the property ladder?
kambites said:
As with any investment it comes down to risk vs reward. I wanted a zero risk account for my daughter and the best I could find was a Coventry Building Society Junior Cash ISA, which came in at 3.6% AER. You can only put about £5000 a year into it though which may or may not be a problem depending on how much you want to save.
If you're willing to risk the money, you could get either a stocks and shares ISA or something like a pension but I think either risks losing some or all of the original pot if the stock market goes down. I assume if you start a pension they wont be able to withdraw the money until they retire, which is hardly ideal if the aim is to help them get their feet on the property ladder?
When you say zero risk you are choosing to ignore the very real risk that inflation will be eroding the purchasing power.If you're willing to risk the money, you could get either a stocks and shares ISA or something like a pension but I think either risks losing some or all of the original pot if the stock market goes down. I assume if you start a pension they wont be able to withdraw the money until they retire, which is hardly ideal if the aim is to help them get their feet on the property ladder?
How do you envisage losing all of the pot? Or indeed any/small fraction of it if the timescales are long enough (depending on age of child)?
I've just set up Junior stocks and shares ISA's for my 2 children - one through Vanguard and one with Intelligent Money.
Given that they won't need the cash for a while I've selected high equity based funds, but obviously these carry a risk of falling in value as has been previously said.
My eldest originally had the government Trust Fund, but the return from it was awful, and prompted me to move it.
Given that they won't need the cash for a while I've selected high equity based funds, but obviously these carry a risk of falling in value as has been previously said.
My eldest originally had the government Trust Fund, but the return from it was awful, and prompted me to move it.
river_rat said:
I've just set up Junior stocks and shares ISA's for my 2 children - one through Vanguard and one with Intelligent Money.
Given that they won't need the cash for a while I've selected high equity based funds, but obviously these carry a risk of falling in value as has been previously said.
My eldest originally had the government Trust Fund, but the return from it was awful, and prompted me to move it.
Were you able to transfer a CTF into the Vanguard junior ISA?Given that they won't need the cash for a while I've selected high equity based funds, but obviously these carry a risk of falling in value as has been previously said.
My eldest originally had the government Trust Fund, but the return from it was awful, and prompted me to move it.
We've had an Invesco fund since the kids were born (2011). Pretty conservative and it's an accumulation fund so the proceeds just roll in. 82% return in that tme...
https://www.invesco.co.uk/uk/products/invesco-high...
https://www.invesco.co.uk/uk/products/invesco-high...
The investment from the Gov should now be a JISA anyway, they were converted from CTFs a little while back.
I'd start with the current provider. Then look at moving it to where you prefer.
I'm just about to move my kids JISAs to Hargreaves Lansdown from the very expensive current provider, although I see people mentioning Vanguard a lot on here so maybe I need to look at that?
I'd start with the current provider. Then look at moving it to where you prefer.
I'm just about to move my kids JISAs to Hargreaves Lansdown from the very expensive current provider, although I see people mentioning Vanguard a lot on here so maybe I need to look at that?
We set up stakeholder pension for both daughters and contributed only their child benefit . (We levelled the contributions to make it fair). So each had around 15 years of around £50 a month.
Looking at the latest statement (contributions stopped about 8 and 6 years ago respectively), for each, we contributed £9032, then received £2390 tax relief and the valuation now is £29,566.
Bearing in mind that the original £9032 each came from child benefit we have effectively got about £60k between them for nothing.
We don't often make particularly good financial decisions but count that as one of our better ones.
Looking at the latest statement (contributions stopped about 8 and 6 years ago respectively), for each, we contributed £9032, then received £2390 tax relief and the valuation now is £29,566.
Bearing in mind that the original £9032 each came from child benefit we have effectively got about £60k between them for nothing.
We don't often make particularly good financial decisions but count that as one of our better ones.
Jisa with HL for our two with similar funds to ours to keep it simple we drip feed the same amount each month into both with birthday and Christmas money going into premium bonds.
I really don’t get the pension thing. Well I get it obviously but don’t see that your kids are going to thank you for it think about all the things they will need money for between now and whenever the government in charge in 50,60,70 years allows them to access the money - first car, house, business, child, holidays etc... they can’t access a penny of their considerable pension for any of these things.
I really don’t get the pension thing. Well I get it obviously but don’t see that your kids are going to thank you for it think about all the things they will need money for between now and whenever the government in charge in 50,60,70 years allows them to access the money - first car, house, business, child, holidays etc... they can’t access a penny of their considerable pension for any of these things.
BoRED S2upid said:
Jisa with HL for our two with similar funds to ours to keep it simple we drip feed the same amount each month into both with birthday and Christmas money going into premium bonds.
I really don’t get the pension thing. Well I get it obviously but don’t see that your kids are going to thank you for it think about all the things they will need money for between now and whenever the government in charge in 50,60,70 years allows them to access the money - first car, house, business, child, holidays etc... they can’t access a penny of their considerable pension for any of these things.
I certainly wasn't suggesting that you only set up a pension but if you can afford it you'd be foolish not to.I really don’t get the pension thing. Well I get it obviously but don’t see that your kids are going to thank you for it think about all the things they will need money for between now and whenever the government in charge in 50,60,70 years allows them to access the money - first car, house, business, child, holidays etc... they can’t access a penny of their considerable pension for any of these things.
BoRED S2upid said:
Jisa with HL for our two with similar funds to ours to keep it simple we drip feed the same amount each month into both with birthday and Christmas money going into premium bonds.
I really don’t get the pension thing. Well I get it obviously but don’t see that your kids are going to thank you for it think about all the things they will need money for between now and whenever the government in charge in 50,60,70 years allows them to access the money - first car, house, business, child, holidays etc... they can’t access a penny of their considerable pension for any of these things.
Agreed. Junior ISA is the way I am going with my two kids. Assuming a 5% return should see north of £140k each by the time they get to 18. Sounds like a lot but 18 years of inflation is not something to be sniffed.I really don’t get the pension thing. Well I get it obviously but don’t see that your kids are going to thank you for it think about all the things they will need money for between now and whenever the government in charge in 50,60,70 years allows them to access the money - first car, house, business, child, holidays etc... they can’t access a penny of their considerable pension for any of these things.
Darlo74 said:
river_rat said:
I've just set up Junior stocks and shares ISA's for my 2 children - one through Vanguard and one with Intelligent Money.
Given that they won't need the cash for a while I've selected high equity based funds, but obviously these carry a risk of falling in value as has been previously said.
My eldest originally had the government Trust Fund, but the return from it was awful, and prompted me to move it.
Were you able to transfer a CTF into the Vanguard junior ISA?Given that they won't need the cash for a while I've selected high equity based funds, but obviously these carry a risk of falling in value as has been previously said.
My eldest originally had the government Trust Fund, but the return from it was awful, and prompted me to move it.
I’m also thinking of the vanguard jisa. Mainly due to reasonable fees compared to HL
Currently my two have cash jisa’s
Can I keep them and start a new s&s jisa this year (and then not be able to pay into the jisa)?
Or can I transfer all to vanguard but keep the current cash balances as cash?
Due to how the cash has been gathered I would like 100% certainty on this and have it tick along earning interest but have the new investment taking more risk to the markets
I understand that annually i can lay in to cash and s&s as long as the sun of the investments don’t exceed the allowance - Just not sure how to do it?
Currently my two have cash jisa’s
Can I keep them and start a new s&s jisa this year (and then not be able to pay into the jisa)?
Or can I transfer all to vanguard but keep the current cash balances as cash?
Due to how the cash has been gathered I would like 100% certainty on this and have it tick along earning interest but have the new investment taking more risk to the markets
I understand that annually i can lay in to cash and s&s as long as the sun of the investments don’t exceed the allowance - Just not sure how to do it?
Lots covered on the ISA side....it is certainly nice to be able to help build up that savings side.
Another thing to consider! once ours were around 12, we opened junior accounts with Santander. They add features as they get older, and eventually turned onto student accounts (the stage ours are at now!): I think it has worked well to help educate them about money.
Another thing to consider! once ours were around 12, we opened junior accounts with Santander. They add features as they get older, and eventually turned onto student accounts (the stage ours are at now!): I think it has worked well to help educate them about money.
We put in £25 (each) a month into junior isa for our 2.
Any birthday money - we have a seperate cash account for that earning around 3% I think currently.
I agree - over there lifetime to when they can get the hands on the money (18) will have only invested approx £5400 - which looking at it that way is peanuts really, but I am expecting it to at least double. Its invested in a low cost world fund.
The joys of not being on much money means we wouldn't even look at pensions, now if nanny and grandad wanted to give them some money, and a substantial amount, I would then look at the pension side, but a junior isa for me is a no brainer no matter how small the amount of money you are putting away.
Any birthday money - we have a seperate cash account for that earning around 3% I think currently.
I agree - over there lifetime to when they can get the hands on the money (18) will have only invested approx £5400 - which looking at it that way is peanuts really, but I am expecting it to at least double. Its invested in a low cost world fund.
The joys of not being on much money means we wouldn't even look at pensions, now if nanny and grandad wanted to give them some money, and a substantial amount, I would then look at the pension side, but a junior isa for me is a no brainer no matter how small the amount of money you are putting away.
river_rat said:
Darlo74 said:
river_rat said:
I've just set up Junior stocks and shares ISA's for my 2 children - one through Vanguard and one with Intelligent Money.
Given that they won't need the cash for a while I've selected high equity based funds, but obviously these carry a risk of falling in value as has been previously said.
My eldest originally had the government Trust Fund, but the return from it was awful, and prompted me to move it.
Were you able to transfer a CTF into the Vanguard junior ISA?Given that they won't need the cash for a while I've selected high equity based funds, but obviously these carry a risk of falling in value as has been previously said.
My eldest originally had the government Trust Fund, but the return from it was awful, and prompted me to move it.
Intelligent Money, as river-rat points out, will take a transfer of a CTF into a JISA (and has a pension/SIPP).
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