How much money are you putting away for DC future?

[optimisticpessimist01]

DP and I don't have children yet but we are TTC. We were discussing how much money we should put away for each of our DC, whether we should do it monthly or yearly and when to give it to them (e.g. age 16,18, after Uni etc.)

What did you do/what is your plan for saving for your DC future? Or have you not saved anything at all?

Ps remember unless you are very low income, your dc will not be allowed to borrow the full cost of living expenses eg my kids can only borrow £4K each yet it costs around £8k in rent, food etc. Very glad we saved!

Even though the accounts are in the child's names (perhaps for a decent interest rate), it doesn't mean they ever have to know about them. Or you can move the money before they have access to it and hold on to it until you feel they are responsible enough.

I put away £20pm for DS to have towards a house deposit. He's also set to inherit £10k when my grandfather passes away.

I'm not saving anything for uni but I'm on a low income so if he chooses to go then he will get the maximum loan.

I save the child benefit which is €140 per month per child. They also have money from grandparents that is kept in a sort of trust fund. They are so lucky and they have no idea. College and house deposit will be there by the time they hit 18 for sure!

Nothing in particular, DD has a savings account in her name which I’ve put birthday, Christmas, christening etc money in and her grandparents pay £20 a month into. I’d like to help her out at uni and buying a house but that will come out of our general savings, we’re not putting anything aside specifically for her

The amounts each month has varied over the years and currently is different between each child with the aim of having a similar total by the time each is 18. We adjust each year on their birthdays. It's in their name and my teens - who both have current accounts at the same bank as their savings - can see the amount whenever they want through their app. We already discuss organizing that money when they're older, just as we have for the small inheritance they each got a few years back and with the money they get now.

There are some risks to giving an 18-year-old a significant amount of money. Maybe it's more a concern with much larger amounts of money that we're thinking which I have heard horrible heartbreaking stories, especially when addictions have been involved. I'd only give an amount of money I was comfortable giving without strings attached, just as a 'hope this helps the transition to adulthood' way as I was given.

I was given a bit more than £3k as a gift a few months after I turned 18 from my maternal grandfather. I don't really 'have anything to show for it', but it enabled me to survive my first year as an immigrant a bit better. I imagine many wouldn't like the idea of their kid/grandkid doing what I did at 18 (what I did is no longer even legal as a method of immigration) and it would have been real easy for him to put conditions on it - but that would have pretty much killed our relationship. I'd already turned down and was not speaking to another relative who had offered a job with heavy strings attached.

While it's great when the conditions some like to put on such money fit what the new adult wants so there are no hurt feelings, it can backlash terribly if it comes across as bribery to change their plans to fit a parent's point of view. If it's not given freely, it's not unsurprising when it then becomes questionable what the real point of it is.

We do a one off payment into their junior isa’s every year. Usually the max allowed, so around £4k depending on our own finances at the time.
Birthday money etc is theirs for now, we usually let them chose a gift with it ‘from x’. We don’t get CB.

Nothing and I’m glad. DC 1 has just started uni at 18 and the thought of her having access to a large sum of money anytime soon makes me smile wryly. She’d blow it in months. Younger DC is much more measured and savvy and would probably invest it wisely!

Even though the accounts are in the child's names (perhaps for a decent interest rate), it doesn't mean they ever have to know about them.

Unless they choose to open an account at the same bank.
In which case it will be automatically linked.

i would really like for mskeats to come back if possible and give us her take on the questions posed to her.

We save £250 now, it started with less but increased when childcare costs were reduced. the money is invested together with my ISAs as I don't believe in handing over a large sum to an adolecent.

It also means we are able to access it for costs at any time like school trips, Scout trip abroad, driving lessons, paying for college.

DD also has money in Germany which her grandparents pay into, one set has a monthly direct debit, the other one pays lump sums 2-3x a year. This account is in DD's name but due to the different law DH and I have full control over it. DD knows about it and that it is designed for her to use during uni/college years.

We'd saved 5k for them by the time they were 18. Now started a help to buy ISA at £200 per month each. Also a pension with small sums here and there.

£100 a month.
But she will never know if it’s existence until she can be trusted!

When I was 18, I wanted a Ford Mustang and that’s exactly what I would’ve bought!

Nothing. DS is now post uni and living back at home rent free though. He had the maintenance loan which just about covered his rent (£4k pa) and we gave him extra for food and travel etc which I guess was in lieu of saving up in advance.

I don't understand them getting your pension? How does that work?

DH is self employed and has a SIPP (self invested pension plan iirc). Assuming, we live off the income and don’t draw on the capital, then on DH’s death, the capital passes first to me and on my death, our children. It falls outside our estate for tax purposes - so they get the whole lot!

@DarkMintChocolate

I don't understand them getting your pension? How does that work?

DH is self employed and has a SIPP (self invested pension plan iirc). Assuming, we live off the income and don’t draw on the capital, then on DH’s death, the capital passes first to me and on my death, our children. It falls outside our estate for tax purposes - so they get the whole lot!

is this you mskeats possible name change ? it needs to be a decent amount then assuming you both live into your 80's, i'm not intending to be rude.

BIBABBLES

I totally agree!
Sometimes actually going and having fun whilst young is the right thing to do.
It's about balance isn't it.
I'm trying to teach older dc about money, they see me save and gradually accumulate money... For everything.. I've drummed credit card use into them but I also stress there is no point in having some capital, some savings, if they worry about it and stress about it, and whilst we should save some of any money we get we should also spend some money!!

DC1 was gifted 10K by my parents at birth so we put that in an investment account for him which we can access. We saved another 2k or so and the investment account stands at 14500 so far. We were putting away £100 a month for him but I’m about to take some unpaid mat leave so we’ve stopped for now but will resume when I start work again.

DC2 due in 4 weeks so hoping parents do same again and we will start saving for him when I start work again. We will make sure they both receive equal amounts in due course, whether it be for uni, house deposit, a bit towards travelling etc.

However, we are also going to be very careful to teach our kids the value of money and a work ethic. When we get our new place we are searching for somewhere with land to grow veg and keep chickens. We will teach them how to look after both and let them sell the produce then encourage them to save some and spend some.

I am from a middle class background and my parents worked very very hard to make sure they were comfortable but we didn’t have everything we wanted as kids and had to do chores to get pocket money etc. I am not going to be handing my kids everything on a platter, they will have everything they NEED but for the things they WANT, they are going to have to earn it

Absolutely nothing. However, I will have been paying school fees for almost 20 years by the time mine finish school, so I hope they will get decent jobs.

They have had some bits of money from grandparents etc (about £600 each, in total). It went into accounts in their names, but I was the trustee and signatory. I allowed them to blow it on second-hand iphones (I don't have a fancy phone and am certainly not buying them for teenagers) so they now have no savings at all.

£100 a month for the last 10 years. We have over £12K saved for her thus far (16 yrs old).
She has just started A levels but wants to join the Navy at 18....go girl 😊

Also, OP, my Will leaves everything to them - but in trust (i.e. it is to be handed out by the Trustees as they see fit, not given to them all in one go). This is the case until they turn 25. I haven't got any money, but I do own property which produces income. 25 seemed old when I devised this, but now that DC1 is heading that way, I'm thinking 35 might be better!

None, unfortunately. Single parent and just trying to keep things together every month!

We save an amount a month (the actual amount seems irrelevant as it will depend how much you can afford etc), but in our names. As has been said up thread, you never know how responsible they are going to be at 18 etc, my brother was a heroine addict so for example giving him thousands at once would have killed him. An extreme example I know, but no. DC were kindly gifted money when born by family members, and for early years birthdays before they decided what they wanted to spend their money on that all went into an account in their name, and they will have access to that when 16 though, as it's not up to us to decide on that one.

She has just started A levels but wants to join the Navy at 18....go girl

Ah amazing @maddiemookins16mum, without detailing I was in for 6 years, but as a rating not an officer as I'm guessing she might be aiming for after a levels? The money will be exceptionally useful still, it might be that she wants to get on the housing ladder in your hometown etc.

Nothing yet other than occasional gifts from grandparents which are in an account in her name, but I'm inclined to think that once we aren't paying out £££ for her nursery fees there will be more spare for the family savings pot so we can help DD and any future children equally depending on what they need.