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Original poster

When you have a baby and people give them money…

27 replies

usernamechanged1 · 29/03/2023 20:06

…what did you do with it?

I had my baby over a year ago and my Mum & Dad gave him some money. I put straight into his savings account and it’s sat there since. They didn’t mention anything about what it was for; they left that up to me. I’d never, ever spend it on myself. I think the guilt would ruin me if I did that.

Anyway, did you use money like this for things the baby needed? Toys? Clothes? Or is it waiting on your child growing up, so they can decide?

OP posts:
Lullabies2Paralyze · 29/03/2023 20:08

The savings account is for him when he’s 18 I guess….but when I got the odd pound off friends of my mam, that went in to my purse so no doubt went on toys clothes food for him

Fluffodils · 29/03/2023 20:09

Money box

yippeeee · 29/03/2023 20:10

Premium bonds

MrsSamR · 29/03/2023 20:11

Into savings accounts for them to choose how to spend it once they're older

NorthernWanker · 29/03/2023 20:12

A mixture, some of it goes straight in his savings, if it's a larger amount and then toys or practical items for him if it's a smaller amounts.
Eg £40+ in savings for when he's 18ish
£20 I'll keep hold of and either buy stuff he needs like a new coat or toys if he's asking for something.

Dacadactyl · 29/03/2023 20:14

When they were young, every penny went into a savings account. If id have been struggling for money to buy them stuff they needed, then id have spent it on them.

When they reached 10, they had to save half and could spend half on stuff they wanted.

When she became a teenager, i tried to encourage a savings mindset still but only have about a 70/30 success rate (in favour of spending it). Sometimes she want to spend it all, sometimes she wants to save. I leave it up to her. Shes 16 and DS is 10 so hes on the save half, spend half bit still.

DD has 12k saved over the years.

babynoname22 · 29/03/2023 20:16

Put it in premium bonds.

Used some to book block
Of baby class baby swimming etc

Used some recently to buy new bedroom furniture for them

Pixiedust1234 · 29/03/2023 20:18

I saved it in their own account and handed it over when they reached 18 with strict instructions not to waste it. They didn't get much but it came in handy.

DD1 - rental deposit and 2 months rent with bf to start but still has a small amount left in case they split up and she can't get deposit back in time.
DD2 - put into that government first housebuyers saving scheme.

I was guiding them so they used it more for a roof over their head or car deposit so they were independent, rather than a holiday and clothes etc, but the final decision was theirs. Both have said how grateful it was saved and not spent on toys etc.

hennythe100footbird · 29/03/2023 20:19

Premium bonds x

winningeasy · 29/03/2023 21:07

Stocks and shares through Hargreaves & Lansdown

determinedtomakethiswork · 29/03/2023 21:10

usernamechanged1 · 29/03/2023 20:06

…what did you do with it?

I had my baby over a year ago and my Mum & Dad gave him some money. I put straight into his savings account and it’s sat there since. They didn’t mention anything about what it was for; they left that up to me. I’d never, ever spend it on myself. I think the guilt would ruin me if I did that.

Anyway, did you use money like this for things the baby needed? Toys? Clothes? Or is it waiting on your child growing up, so they can decide?

You need to look at the best way of investing this money. What about a pension? I know it sounds crazy but when you think about it if it is invested for 50 or 60 years it's going to make a lot more money than if you just do it for 18 years. Also when your child is 18 be a bit daft 🤣and want to spend it on rubbish.

S72 · 29/03/2023 21:10

Stick it in a junior ISA (stocks and share). No withdrawals can be made and the account reverts to the child when they turn 18. Add in regular contributions to build up a little nest egg for them.

Cupcakequeen75 · 29/03/2023 21:11

We always put it in PB's but nowadays there are other options to be considered (pension, lifetime ISA etc).
Certainly it was never intended to be made available until the children had grown up and come of age. Luckily they have all done good things and used it to get on the property ladder.

teacakie · 29/03/2023 21:12

It depends how much money we are talking.

I usually spent it on the DC, but they were never gifted a huge amount.

LadyIckenham · 29/03/2023 21:14

We'd already opened ISAs, so it went in savings accounts for them to use if they wanted. My aim is to give it to them when eighteen, but I have used it to fund a decent device for them on joining secondary school (well, 2 of them thus far).

Floofyduffypuddy · 29/03/2023 21:16

What are your finances like? Has anyone else mentioned a savings account? Some gp save seperatly for them. Are you flush? Can you afford lessons for them when older, ballet, football, season tickets to local farm /attraction?

Can you afford savings account? Can you afford to dress them!
We were hit by credit crisis when my dd born we used every penny to keep going.
At that time.

Depending on all of that I would split money up and have several accounts.
Some in stocks and shares isa general index fund.

Some into a sipp as pp mentioned. Save now and their personal pension could be large when older with little in put.

Some into a regular savings account.

A little into pb but not much...

Ragwort · 29/03/2023 21:17

We put it into savings (& invested in a pension fund for DS as soon as he was born Grin) but we were/are in a comfortable financial position. If the money is needed for swimming lessons, clothes, school trips, whatever then it's ridiculous to deny your DC those basic things just because the money is in their savings account. I wouldn't use it for buying overpriced toys though (IMO).

WildAloofRebel · 29/03/2023 21:19

Put it in a pension for them. Not for when they’re 18/25 etc. Interest building up until they’re way older!

Our kids have that and premium bonds and I think FIL has an ISA for them maybe.

Girasoli · 29/03/2023 21:26

DCs baptism and 1st birthday money all went into savings accounts (1 for each DC) we top up for university.

Other birthday/Christmas money from PILs pays for swimming lessons or days out plus a trip to the toy shop to choose something.

WelshNerd · 29/03/2023 21:36

Fags and scratchies x

AliasGrape · 29/03/2023 21:37

So far any birthday or Christmas money has gone into a savings account. The birthday money from last birthday (2nd) I was a bit in two minds about because a few people made it clear it was given so it could go towards a bigger purchase - we had thought of a balance bike but ended up getting one passed on for free and the moment went in her savings account. (She’s shown absolutely zero interest in the bike so quite glad we didn’t spend the money now!)

If as she gets older there are things I feel she will really benefit from but we couldn’t afford ourselves I’d be happy to put birthday/ Christmas money towards it, but DH is more keen on putting it into savings for her.

slowquickstep · 29/03/2023 21:37

In to an account that was given to them when they were 25, would never have given it to them at 18, they would have wasted it.

SBAM · 29/03/2023 21:42

Money from relatives for birthdays and Christmas goes into their savings, which they’ll get when they’re 18, with encouragement to use it for a car/house deposit/something else sensible.
Sometimes they get £5 from grandad for ice creams if we’re going for a day out/on holiday, I’d spend that on icecream or let them buy something in a gift shop.

Mine are still young though, they don’t really understand the value of money, and we can afford necessities and treats for them. As they get older we’ll be giving pocket money and letting them learn how to spend/save/budget for what you want.

Upsadiddles · 29/03/2023 22:04

Money that was given to them as babies I kept and used on bigger items that I felt benefitted them as they got older, e.g. a fancy activity centre. Birthday and Christmas money the same - I’ve kept it for when there’s something specific they really want. My 5 year old was more aware of getting some money on her last birthday and wanted to go on a shopping trip, so we let her spend half of it but encouraged her to keep some for another time which she now wants to spend on a trampoline. We are just starting to introduce pocket money and the concept of saving, so on her imminent 6th birthday will suggest she saves some.

I’ve always felt that money given as a gift is for the child to enjoy (unless the giver specifies otherwise). However, we are already saving a little each month into accounts in their names, and have a longer term plan for how we’ll afford uni/help to get on the property ladder saved in our names. Plus grandparents have a savings account for them too. If we couldn’t afford to do this, or struggled to pay for dance classes/swimming etc then I’d be more inclined to save it or use it for extracurricular stuff that they’d otherwise miss out on.

PeachPiePrincess · 29/03/2023 22:06

We used it to buy things we needed for the baby - eg buggy, play mat, chest of drawers for clothes,