DC's and their money

[Flingingmelon]

Discussing DS and a bank account. DH doesn't see the point. I'm not sure, he's only a toddler. He does however understand about money in its simplest form, so I wondered if now was a good time to open one

My questions are;

How old were your DC's when you opened a bank account for them?

When did you start giving them pocket money?

TIA

[Gillian1980]

Bank account: opened when DD was about 3 months as we wanted to start saving for her asap, and GPs gave £ for Xmas.

Pocket money: not yet as she's only 7 months but I expect when she starts school I'll give her weekly pocket money.

[VulcanWoman]

Opened my son' bank account when he was a few weeks old. Put his birthday/Christmas money in until he was early teens when he wanted to start spending it instead
I don't understand what possible reason your husband could come up with that it would be a bad idea, has he said why, maybe he's worried in case he will have to fork out, sorry if this isn't the case. What are you planning to do with birthday/ Christmas money.
My son will have about £3,000 when he's fully cooked. Hopefully it will come in handy for something.

[Flingingmelon]

DH - and I can see his point - thinks that it makes more financial sense to just say 'we mentally put aside X amount every birthday and Xmas for X amount of years and here it is.' Rather than open a savings account with a crappy interest rate.

But when I was little (admittedly older than 2.5) I think enjoyed putting money into my post office account every week and watching the numbers mount up in the book they gave you. It was a big deal to get it out on your birthday or on a holiday etc and the interest! Wow!

You can't really do that now though, a piggy box would be the only real equivalent.

[Flingingmelon]

Haven't had to deal with birthday / Xmas money yet. Good point.

[willfuckformichilenstarfood]

if you open a bank account put in 'in trust' myself and my brother have recently inherited tens of thousands and whilst I'm very sensible with money, he is not. You never know how they will turn out/what paths they will go down. X

[VulcanWoman]

Yes, but children's accounts usually have as good a rate as say an adult ISA. Too easy to spend it if it's in your usual account.

[Rshard]

Children's bank accounts often have decent interest rates if you hunt them out and are prepared to limit access to it. My dd has had an account since she was weeks old and family allowance has gone into it. As that figure increased we moved it into a higher interest, limited access account.

She's had pocket money since a young age, maybe 3. It was a tiny amount 50p but it was her money and she saved it in a piggy bank and then spent it. We wanted her to value money. Now at 10 she's very good with money, she saves and spends it on things she wants/needs and has just bought me Mother's Day gifts with her own money.

We've just set up an account with a cash point card and she gets more pocket money but this is linked to doing homework, making her bed and looking after her rabbits. Our idea is that eventually this will turn into an allowance which will have to buy certain essentials.

[VulcanWoman]

In fact, I've just had a look at Coventry Building Society Junior Cash ISA at 3.25% better then the adult ISA's.

[Flingingmelon]

Vulcan - the chances of us spending it are teeny thanks to DH. In fact I've just sent him links to the money saving expert guide to kids accounts and now he's getting all excited comparing kids isas

Thanks for the advice!

[ClutterofStarlings]

We've just opened our girl a Halifax a/c - giving 6% for the first year. She's only seven weeks, I think I'm anticipating that this will be long term savings for when she's 18 or 21 and as she gets older she can have a little pocket money account. I'm very keen that she learns to manage her money as I was never taught and ended up learning the hard, poor way.

[ijustwannadance]

We opened a savings account when dd was born. We have standing orders set up and pay £10 a month each in. My DM also puts £10 a month too. We don't miss it and it adds up. Any gifted money gets chucked in. We put half her birthday money in a few weeks ago. She's now 5 and has almost £2000.

To me 'mentally putting it aside' would be useless. I don't notice £10 a month but doubt very much I would have 10 grand to just hand over when she hits 18.

No pocket money yet but does have a money box she saves pennies in.

[VulcanWoman]

That's great then. I know Coventry Building Society is local to the Midlands but accounts can be open online I think and their rates are competitive, I've heard Martin Lewis mention them before. Good luck.

[kaymondo]

My DC have two accounts each - one that we pay into monthly which they can't touch until they are 18 (a CTF for DS1 and junior ISA for DS2) and then a normal kids savings account which birthday/xmas money gets paid into.

I like that they have their own money in a specific place and as they get older and start getting pocket money they can learn to budget.

I do worry about them blowing the cash in their CTF/ISA accounts when they turn 18 as we would have no control over the money at that point, but my plan is to offer to continue to pay into those accounts if they leave them/pay into them themselves unless for necessary big purchases (ie, car, house deposit etc). I just don't want the cash frittered away with nothing left to show for it.

[jamtartandcustard]

Savings account from birth but current account at 11 when dc start secondary school. Gets an allowance monthly for all her clothes/socialising/phone/everything other then essentials.
The younger ones (7,4,0) don't get pocket money. I used to do it with dc1(12) but it got too complicated when step-Dc get involved so I just get the younger ones what they need when they need it. It was only getting spent on sweets or crappy toys (Moshi monsters?) anyway

[cornishglos]

We opened a current account in our name as a place to store their money. We put everything we've ever been given for them into it. And add £10 per month too. They are still little but have about £500 between them.

[AStreetcarNamedBob]

Our children had them opened at birth. We got lots of cheques when they were born.

Now sometimes for birthdays or xmas they get a cheque so we pop that in as well.

Never to early to open one