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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask how much you save for your child's future...

232 replies

Leggytadpole · 07/05/2016 10:09

Not strictly an AIBU I know but I've just received my child's junior ISA statement which I save £10 into monthly and his DF matches that amount. It's not much but being a part time working single mum I can't really afford much more.

It's predicted to be around £3500 - £5500 by the time it matures when DS is 18. It will probably barely cover the cost of learning to drive and buying/insuring his first car. I know that's good but would not be enough to help with uni fees or a deposit for a house. I guess my circumstances will be different then so hopefully I'll be in a position to help him financially by then but who knows what the future holds.

So AIBU to ask what other people save for their kids?

OP posts:
SouperSal · 07/05/2016 17:21

Definitely doesn't work like that if you have it in a JISA or CTF.

OublietteBravo · 07/05/2016 17:22

Where - yes, this is partly why I put a large chunk into a pension fund. That way they can't touch it until they are much older (they certainly can't fritter it away in their twenties).

HolditFinger · 07/05/2016 17:25

£100 per month goes into a savings account for DD. She won't know she's got it until she wants to do something like buy a house, start a business, that kind of thing. It'll be a nice surprise.

RJnomore1 · 07/05/2016 17:28

Dd2 has a child trust fund, I haven't added to it because I have no control over it but she's likely to get about £500 in the long run. Her sister won't but then I doubt by the time dd2 goes to uni that fees will still be paid. That's money from the government though not from us.

The savings I have for them is in a savings account in trust to each of them but I have control, can withdraw money etc, and I plan to move it all before they're 18 possible into a locked account with a decent interest rate. When they were tiny we were really on out uppers and putting money away every month was very tough, so I don't want it washed down a bar in Ibiza.

WhereInTheWorldToNext · 07/05/2016 17:29

Seriously the naïveté on these threads is terrifying....

Where you have accounts in your DCs names the financial institutions are obligated to inform your DCs once they come of age. Thereafter you get zero say in what happens to what will be their money.

This issue has been before the courts repeatedly and the outcome never favours the parents or what you might consider "common sense".

Be very vet careful about putting significant assets in your DCs names.

PaulAnkaTheDog · 07/05/2016 17:30

How have you saved for your children Where?

ladypie21 · 07/05/2016 17:31

Nothing directly for the kids although I save every month for the "future" and if that's to help kids out later in life then so be it. I'm hoping it can go towards my retirement fund though which is much more of a worry!! We'll be able to save much more once they're both out of nursery so may rethink then!

IHaveBrilloHair · 07/05/2016 17:33

Nothing, she has money from my Dad when she turns 21

Savagebeauty · 07/05/2016 17:33

DCs are well provided for due to ex.
He will set them up in a flat when they leave university.
We both have good pension pots and they are sole beneficiaries in our wills.
So eventually they will come into a lot of money.

loubielou2 · 07/05/2016 17:53

Both my DC have around £2K each in an Junior ISA but nothing going in on a regular basis and nothing has done for about five years. I feel pretty bad about it to be honest. All extra money (DH main earner, me SAHM and cleaner) goes on Scout subs/camps, music lessons, treats eg days out, extra curricular clubs. I plan on buying some Premium Bonds for each but wondering whether to bother, or will add something in to their ISAs when more financially able. Plan to give them a chunk of money from any inheritances we get. I know of a child whose Mum casually mentioned her child had £18K in their account.

cocochanel21 · 07/05/2016 17:59

For Dd1 sadly I wasn't able to save anything for her as I was a single parent. I did work full time so any extra money I ever had got spent on her.

Dd2 has a trust fund set up by the in-laws which she will get when she is 25. We also pay £400 a month into her bank Account.

WhereInTheWorldToNext · 07/05/2016 18:00

paula I don't save anything for them directly beyond (as I said in earlier post) a few thousand that has been received from third parties over the years.

I will be able to gift them money for uni/flats/travel as they profess into adulthood but that will be on my terms as and when appropriate.

We have "family" savings, DH and I own property and of course at some point my DC will inherit from us but that would be in trust until they are 25.

The idea of my DC being let loose with a significant sum age 18 is terrifying - I know what I'd have done with it Confused

FrankUnderwoodsWife · 07/05/2016 18:05

The reason for starting a pension for our DD, was so that she is provided with an income in her retirement.

She may be very irresponsible, spend all the money we've saved for her, or marry someone who subsequently divorces her, and gets a home as part of the settlement.

By having a pension, which she probably won't be able to access until she is 70, whatever mistakes she makes during her adult life re her finances, at least her old age will be comfortable.

Artandco · 07/05/2016 18:08

They will have a fair bit as adults. Dh and I started adult life from nothing, it was tough. We hope to make it easier for them.

We put money buy each month for them. They have money in shares we bought and value rocketed. They will receive several properties abroad from pil

flirtygirl · 07/05/2016 18:10

Change the accounts into your own name before the dc turn 16 if you want to have any type of control or set up proper trusts as at 16 dc control their own accounts and money.

In the case of my dd it has taken the last year to set up third party mandates due to her having autism and i didnt want to have to pay for a solicitor and get power of attorney.

Ive still to sort out the premium bonds ive bought her over her childhood, as at 16 they moved from being my name/ held in trust her name to just her name. National savings have complicated procedures.

She has high functionsl autism and ive working to make her more independent over the next 5-7 years but i worry she be preyed upon for her naivete.

KathyBeale · 07/05/2016 18:12

This is like reading a foreign language. Some of you save more for your children's pensions than I save for my own. My kids have savings accounts but we've never added to them and now they want to spend their birthday money they're barely touched. I honestly didn't know this was a thing and I tend to think that teaching your children good financial sense is more valuable than any amount of money.

Babettescat · 07/05/2016 18:13

You don't need to save money in a kid's name to be blown up by them at 18.

We save lots for DS who's a baby - in a seperate account FOR him but in our name. All the money there is his. It's was created the week after he was born. But it is not in his name. It doesn't have to be that way you know!

0christmastree5 · 07/05/2016 18:14

...

0christmastree5 · 07/05/2016 18:16

Pensions .... For your children .... At 70!!! Wow I've heard it all now .!

Artandco · 07/05/2016 18:18

Yes making children grow up with financial sense is the goal. However, property for example near us is now £400k+ for a 1 bed flat. They will need help to get on the ladder even with decent jobs

FrankUnderwoodsWife · 07/05/2016 18:18

But surely saving is a valuable way of teaching financial sense?

My DD knows she can only get toys on birthdays and Christmas. Otherwise she has to save up and spend her pocket money. She usually decides to not bother!

Today, she wanted to go to a toy shop. My DH and I asked her if she had any money to spend. She does but is saving up for a bow and arrow..... So instead, we've ended up making a camp in the woods and took the dogs on a hike to a waterfall, and had a picnic.

We're fortunate to to be currently living in the French Alps, where the emphasis is on an outdoorsy lifestyle.

I hope my DH and I am bringing our DD up to be a balanced individual.

Babyroobs · 07/05/2016 18:21

Frank - You sound very sensible.

FrankUnderwoodsWife · 07/05/2016 18:21

I know, it's pretty insane to think we're paying into a pension for our DD, who is only 8

But I don't think there will be a state pension provision when she is of pensionable age.

Also DH and I will stop paying into it when she has finished in full time education (uni or whatever), and she will either pay into it herself, or just leave it.

Longislandicetee · 07/05/2016 18:27

I wish there was an ability to lock the JISA and CTFs away till they're 25.

For premium bonds, they write to the child just before they turn 16 (up to 3 months before) and tell them all about it.

Longislandicetee · 07/05/2016 18:34

We are also paying into pensions for the kids so my 4 year old has had 3 years worth of pension contributions. we will pay into it till they finish full time education so that hopefully they aren't pressured to start contributions straight away. They won't be able to access it till 55 which is a good thing!