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?

Unfortunately when I'm forced onto universal credit I will be unable to save a large amount as their savings as well as mine (over £6k) will be assessed and I will have to spend them to make up lost UC. Tax credits allow saving for your DC. Before anyone says anything I am a not by choice lone parent and 2/3 DC have SN so earning a lot more is not an option for now.

@BoardingSchoolMater I got a small trust fund at 30 (I mean small - it was 10k). Best age ever and it's what I've written into my will. Old enough not to spunk it on booze and holidays but young enough to really need it. It went to a house deposit which by 35 I'd have missed the boat I think.

Interesting thread. We don't save for our kids at all. We'll pay for any education they need including Uni. If they are working and studying hard we'll probably contribute to a car. Maybe to a house deposit, again If they're leading responsible lives.

120 quid a month. Started when he was 5 but with a lump sum of a few thousand. I think it's about 7k now, he is 8.

In the country I live in, you can save for your kids uni/college/apprenticeship in a special account that only pays out if the child pursues an eligible education. If not, the funds revert to your government registered retirement savings account. It's quite handy. That's what I use.

Agree its tricky just having cash for them. The arbitrary ages we imagine as being "adulthood" e.g. 18 or 21 or even 30, do not guarantee that they will use the money in a way that makes the sacrifice of saving actually worthwhile!

@optimisticpessimist01 Really interesting thread!! So many mixed responses 🤔 Partner and I are due DC1 next month and have been thinking about this too!
I come from a family that always struggled fand my parents were never able to help me financially. I worked weekends and school holidays from the age of 14 in order to do the things I wanted to as a teenager (waste a fortune on expensive clothes 😳🤢) and have a small amount of savings behind me as a safety net for going to uni. Took full student loan and worked around 20 hours per week through uni in order to fund my accommodation/living expenses/books etc. Finished uni and started work then had normal life expenses like rent etc and wasn’t in a position to save much.
DH and I have now bought a home that we love and pay equally towards the mortgage/bills etc however the entire deposit came from him (which I’m unbelievably grateful for and obviously I made sure it’s all legally written up that that contribution was entirely his!) . His parents had been in a position to fund him through education and had saved monthly for him since he was born so even though he also worked through his education he was in a position to be able to save most of it and add it to his parents contribution to give him a substantial deposit for his first home.

I’d love to be able to be in a position to offer my children help towards something such as a first home so that’s my aim 🤞🏼 I’m also very aware that I was never taught about savings or encouraged to save by my parents as it’s never something they had managed to do and that’s something I’d really like to educate my children about!

We save monthly towards house deposits as I’d like them to have secure (as much as is possible) housing. I consider driving a life skill like swimming so will fund that separately.

None. We’re paying for them to have expensive and specialist school experiences. I imagine we will go on supporting them into young adulthood in their careers. We’re happy to help out whilst we can but savings are something they can do for themselves when they’re earning enough.

2 children, 10k each

• BTW, those that can save but choose not too, many wealthier dp had a considerable changes if circumstances by the time dc in late teens Earley 20s.

Ie, bankruptcy, lost houses, divorce, partner death leading to depression in partner left with no compulsion to work, long term illness...

Personally I'd put something by, just in case.

Nothing specifically for the kids as such. I pay for extra curricular stuff and don’t scrimp if they would like a special Christmas present one year or eg PC when DS1 was in year 11. Paying for all living expenses, food, clothes & shoes, school dinners, meals out, holidays, cinema etc for 2 extra people costs a LOT!! Driving lessons coming up too. So I think that’s enough for now till they go to uni when we will pay for a lot of their maintenance costs.

We don’t even give them pocket money at the moment, though they GPs do. They spend a bit of that and the rest goes in their own little savings accounts along with Birthday and Christmas money. That will be all theirs to spend as they wish obviously at the age of 18 but as it’s not much I don’t worry too much. If they want to spend it in a holiday to Ibiza after A-levels that’s up to them.

We DO save generally for our household to cover any one off large household purchases, towards next car etc. Me and DH both have a savings account. I save for anything including holidays (£300 per month) and if I have anything left over out of my salary I save it there too. I’m not a big spender so I put aside a fair bit each month. DH pays most of the bills and we’re mortgage free thanks to an inheritance so count ourselves very lucky.

We intend to give adult DC money (currently teens) at the point they need it for something specific. A specific amount. Eg flat deposit or to buy a car if they need it to get to work. If we can afford to we will pay their student loan payments for them .

There is no way on God’s earth that I would gift a lump sum at the age of 18 or even 21 and tell them to do with it what they want, as I’d be so gutted if they were a bit silly and blew it and i’d worry my view of them would change forever. All that hard saving, to be blown on something DH and I could have frittered it on instead . So when it comes to the point where they are saving up madly themselves for a house deposit, that’s when we would give them a lump sum, as a gift.

Romeo Juliet

No, I am not mskeats. Actually our IFA says, we can live for 30 years on the income, and not touch the capital, if DH retires at state pension age.

DD has a trust fund (PILs) which she'll get access to at 18/21. I know...

I give a tenner a month each but that's only Cos low incomes at the mo. When that changes will up to £20 or so a month. Have 2 kids. It's in 2 separate savings accounts both in my name Cos I blew all my savings age 18 and I don't want my boys learning from my old habits!! I don't even plan to tell them about savings and will just hand it over when I feel they're responsible

I also save change in piggy banks and add to their savings every so often. When they reach an older age they can use the piggy's to encourage saving for holiday spending money and magazines etc.

None.

My father has however
given them each £30k to be used for uni or a house deposit.

Aim to have £40k each for them but that money is ours until we wish to hand it over....no blowing it in 6 months either!

£50 each per month into their own pension fund (started when they were born) and £50 each per month into a bank account. I’ve been very lucky with several final salary pensions - when I retire they’ll be early 20’s so I should be able to also help them with lump sums if needed.

None. We can't afford to.

Only about £30 a month each (three kids) since birth plus bits of birthday money etc when they were little. This used to be their child benefit when it was around, Accounts are in their names but they don't know about them and I have complete control. I've never taken money out but plan to for things like driving lessons or a car for them. Hopefully by 18 there will be about 15/20k. I won't be giving it to them then though.
They also get £30 a month into their own bank accounts that they use to buy little bits they need (including clothes) with their plastic card. Obviously we pay for their phones as well. They're 12, 13 and 15.

I don't really like saving for them tbh, they shouldn't need a help up, the country should be geared that they can manage without it. I could when I was young, without money from parents. Things are different now though and life/money is much harder for young people. Unfortunately this just creates even more inequality, the kids whose parents could safe for them and the ones that couldn't.