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Is there anything more that I can do for DS, financially?

(13 Posts)
prozacbear Fri 29-Mar-13 12:51:02

It only occured to me recently that, you know, some day DS would be 18, or something might happen to me, so just trying to work out what I can do for DS for the future.

So far I have:

Life assurance of £250k associated with my work, which is good, and I have arranged that to paid directly to DS in case anything happens, with Ex-DP as trustee. I also have a savings account under my name, not his, with the idea that I will pay for part of DS' university fees. This is what my grandmother did for me, as at that age I was not capable of managing my own money, and I'd like to 'give' DS something that isn't money; education is very important in our family.

No will yet, but I will do that. I'm 24 so it's easy to keep putting it off, but my goal for Q4 of 2013 is to get it done.

Is there anything else I haven't thought of? Ex-DP has a small amount of savings and has started a savings account for DS (which his mother also contributes to), and that's it. Anything else?

Thank you.

prozacbear Fri 29-Mar-13 12:55:44

I should add that as I earn more money, I aim to start another account (that is not touchable) for a deposit for DS' house - at the moment I am only able to save for this account and for my own deposit.

I really want to be able to provide a safety net for DS; my mother wasn't able to do so for me and it affected the career I went into and the life I have (I have always worried about money and the lack of it, so have gone into the highest paying career I could find), and I want DS to be able to have a gap year, go travelling, etc and not worry about money.

ItsAllTLAsToMe Fri 29-Mar-13 13:13:00

Well, it sounds like you're on the right track. What about a junior ISA, is your DS eligible for one? Wouldn't the interest rate be higher than a savings account (plus everything would then be in a tax-free wrapper)? And what about a pension? Apparently it's not such a crazy idea, honest grin. Finally, I do wonder about saving a significant amount for your DS when you're still saving a deposit for your home. There's an argument to be made for sorting that out first, then saving as much as you can for your DS.

PoppyWearer Fri 29-Mar-13 13:13:22

Longer-term, what about starting a pension fund? I know it sounds daft, but yes you can start a pension fund for a baby/child and even a little bit put away now will really help him when he's older. And it's a very tax-efficient way to save money.

When he starts work you could suggest matching his contributions to it, but teaching him to save for his retirement is an excellent financial lesson.

PoppyWearer Fri 29-Mar-13 13:13:37


PoppyWearer Fri 29-Mar-13 13:14:22

Oh and I do agree that getting your own deposit together perhaps ought to be a higher priority?

prozacbear Fri 29-Mar-13 14:13:12

ItsAllTLAs - I'm only saving £50 p/month for DS which is money I can spare and still save towards a deposit, but you're right, my deposit is my highest priority so definitely not going to save anything else before that. I think DS is eligible for a Junior ISA, which is what ex-DP has sorted out, but I haven't had a chance to research yet; will do.

Pension is a good idea, thank you both! I didn't even know I could do that - and yes, if I start now it will really be worth it later on. I'll look into a pension fund, thank you - knew I could rely on MN for new ideas.

ItsAllTLAsToMe Fri 29-Mar-13 14:17:13


mamageekchic Fri 29-Mar-13 14:29:37

I have life assurance a junior ISA and a pension fund for 23mo DD, I hope that by the time she needs it she'll be more than prepared or her own retirement but I hope it starts a good habit as it'll already be set up etc for her to add to. (The few people I've mentioned it to seem to think I'm bonkers!)

ItsAllTLAsToMe Fri 29-Mar-13 15:05:56

I like your style, mama.

CogitoErgoSometimes Fri 29-Mar-13 15:20:29

Aside from actual hard cash, I think the best thing you can give your kids for their future is financial education. Understanding the ins and outs of interest rates, APRs, debt, investment, savings, the value of money and hard work, the pit-falls of lending etc. 'A fool and his money are soon parted' so, as well as saving up, do your best to make sure your DCs aren't fools.

ItsAllTLAsToMe Fri 29-Mar-13 20:04:58

Great post, Cogito. I think you're right, a basic working knowledge of savings, mortgages, pensions etc. is hugely important. I had to figure all of these things out for myself as an adult, but I want to ensure that I teach DS about how they work, and why they're important. I think that you could argue that this is even more important than providing a lump sum at age 18 (which not everyone can afford to do).

charlearose Sat 30-Mar-13 18:46:23

Message withdrawn at poster's request.

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