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Do we HAVE to save for our children's future? My parents didn't for me.

(34 Posts)
carolinecordery Fri 01-Mar-13 09:40:52

I feel a bit guilty for not saving for my children's future, although they're only 23 months and 4.7. Do we have to? My parents didn't save anything for me, but then again I was in the days of free university courses. Has the university tuition fees situation changed everything? Or is the ridiculous cost of housing as well?
I would like to put by £50 a month each for them. I could easily make that out of what the older child's dad gives in CSA, but for the younger one, his dad says let's not bother about saving for him till we're settled in a house etc (just started saving for a deposit). So should I make up the younger one's £50 by myself or not save for the older one either until the younger one's dad is willing to chip in?

ISeeRedPeople Mon 11-Mar-13 15:09:14

My 18mo DD has a normal bank account and if she gets any money for Xmas etc (or MIL's bingo winnings!) it goes straight in there. I do worry that I ought to have some more formal arrangement - ISTR my parents had life insurance for me and DB or something? I haven't a clue about any of that or if you can still do it.

She also has a £2 tin that we save any £2 coins we get, ostensibly towards a holiday somewhere far-flung when she's old enough to appreciate it.

We have a baby on the way and I don't know how it's all going to be split. I guess the £2 tin becomes 'theirs', and I match the two bank accounts on handover day. God knows!

Mum2Fergus Mon 11-Mar-13 16:35:19

I have child benefit paid into a savings ac and top it up with any birthday/xmas money he receives. Ac in my name incase of emergencies and I can access it but no need so far. Have approx £5k for him at moment do hope to keep building on that.

tigerlilygrr Tue 12-Mar-13 19:41:11

Notmadeofrib I agree 100%! A finance writer for the Telegrsph said the best gift a parent can give a child is to ensure that they - the parent - is financially independent and solvent. If you have money left over after that, fair enough.

ShatnersBassoon Tue 12-Mar-13 19:49:04

There's no expectation I don't think. My parents didn't save for me, I have no problem with that. They'll be comfortable in their dotage and I can't fault them for putting their spare cash into their pension.

I do put money aside in trusts for the kids, but not for anything specific and I don't suppose it will be a life-changing sum when they cash them in.

zwischenzug Wed 13-Mar-13 20:56:49

Social Mobility is lower than it has been in 50 years, house prices are triple what they were in the 90s, University costs £50k rather than being free AND is required for almost any job with a future, decent pension schemes are closed to new entrants - many parents* have had a fucking easy ride and their kids won't have half the opportunities they did. Too bloody right these parents should be helping their kids out with money.

*Younger parents (under 30) may suffer from some of these issues themselves.

zwischenzug Wed 13-Mar-13 21:10:04

Oh yes and not to mention many of the jobs the parents started out in have been exported off to China so that the same parents can buy cheap DVD players and suchlike in the shops. Starting out in life is harder now than its been for anyone born post WWII.

(and no availability of iPods doesn't negate the lack of availability of jobs and housing, and things that are actually important in life).

Jayne266 Wed 13-Mar-13 21:20:31

Me and DH talked about this and felt we needed to put money away. We have said however its for us to decide what it goes on and he won't know about it.

Babelange Thu 14-Mar-13 22:18:27

If you save for your kids (eg. Bonds, accounts in their name), you have to sign a declaration to say that the savings are completely theirs for tax purposes.

I am in favour of making the savings clearly identifiable as theirs. I am vague about the exact amount, when asked I agreed about £1000 total but in fact it is more - in the form of savings, bonds, shares. One of the building societies (might be true of all) start sending info to kids about their accounts @ 12 & require a signature at this age too!

Youngest has a govt Trust Fund & we started saving for both DCs at the same time; eldest has more complex investments & is running £500 behind so wandering what to do about that.

I am in the camp which is to save specifically for the DCs. I am more worried about the stealth boasting that would go on if they knew... Goodness, one of the cheeky DCs came back from school with information about other parents' salaries and asked me what I earned.

The problem is money comes & money goes, just a little a month could make a big difference in the future, especially if something comes up and needs to be covered from income - my parents helped a little when I was a young adult but we're older parents ourselves & wonder about being in full employment before retirement just when our DCs might need us. Pensions are sorted & now ready to start a buffer fund for ourselves.

OneHundredSecondsofSolitude Thu 14-Mar-13 22:46:52

We've not got enough to save. We barely break even each month

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