To think Child Benefit goes into the family kitty?

[summerfish]

I was talking to a friend yesterday, and she said that she saves all of her child benefit in a special account, which she will give their children when they are 18.

I have never done this at all! Child benefit goes straight into an account which my husband and I use for family expenses. Also I have no idea how this would work practically, as the first child would presumably get a much larger slice of the pie, owing to the fact that the second child gets less CB! Not to mention, the fact that I have to pay my child benefit back via my self assessment in any year that I earn over a certain amount.

AIBU To think that child benefit is to be used for every day expenses?

Ours is split 3 ways. A third stays in the joint account and then a third each into each child's savings account.

@Alabamawhirly1

Because I'm sure the only reason is if you or your partner earn over 50k per year. In which case no, you don't need it.

When we got it we needed it. So it went in the family kitty to cover kids stuff. We now don’t get it but if we did I’d save it for them. We don’t have any savings for the kids and I know other people do and put in their CB and more.

I don't know how you know which money it is.

All of my income goes into my bank. All expenditure and savings goes out of my bank

At present ours is given straight to our dd who spend it how she pleases on clothes and shoes! So it’s her pocket money to use each month!

I must be getting soft in my old age as when they were younger it was used when needed. Now I can afford to just hand it over to dd,

It is money for taking care of the child - originally so that a mother could be sure of income for the children, whatever the (more usually earning) father did or did not do with the wages.

Only people with an income under £50k can get the full amount, and the vast majority of those families will need it for day to day, especially if trying to house kids in London.

Many families will try and save a little for their kids, so a pound in an account is a pound in an account, whether it comes from the CB, selling stuff on eBay or your salary.

It's your choice.

When it was introduced in 1975 it was a universal benefit and the only benefit paid directly to the wife/mother.

@2pinkginsplease

At present ours is given straight to our dd who spend it how she pleases on clothes and shoes! So it’s her pocket money to use each month!

I must be getting soft in my old age as when they were younger it was used when needed. Now I can afford to just hand it over to dd,

Why not save it for her future?

There are people getting it who don't need it and so are saving it for the kids.

I can't get it but could actually use that extra money each month instead of eating into my credit card.

Maybe some people just spend less than you or manage their money better.

A friend of mine manages to save her CB but she chooses to live in a 2 bed house with 2 children whereas many other people would say they ‘needed’ a 3 bed house. If my friend had a 3 bed house, she wouldn’t be able to save the CB. 🤷🏻‍♀️ That’s her choice to make.

@Alabamawhirly1

This thread shows how stupid the child benefit system is.

There are people getting it who don't need it and so are saving it for the kids.

I can't get it but could actually use that extra money each month instead of eating into my credit card.

So do you earn more than £50K

*This thread shows how stupid the child benefit system is.

There are people getting it who don't need it and so are saving it for the kids.*

This thread also shows how stupid some of the posters are.
You don't get it if you earn too much, end of story. If you have high outgoings that's nothing to do with earnings.

I remember a mother at a group when our youngest ones were babies (nearly 30 yrs ago now!) talking about putting the CB in an account for the child. I was gobsmacked as we couldn’t afford to not use it - we’d often be ‘Good, CB’s due tomorrow so we can do a food shop’. Anyway it transpired later that nearly everyone else at that group had to use the CB to survive too. I guess nowadays there might be fewer ‘savers’ simply bc it’s means tested but I bet there are lots of parents who can’t save it for later.

I don't think there's a right or wrong here. It goes in the family pot here because it's very much needed and I can't afford to save it.
If I was financially better off, I'd probably save it.

Always used ours as general household money. There have been times when we needed it to buy food or pay for school lunches or a trip. Or they needed new shoes/pants etc.

There have been times that I have put it aside but more short term goals like saving for an expensive school trip, skiing or to France.

But generally it’s used each month. When the dc got older they had pocket money which came from the cb. I now only have dd to give pocket money to as ds2 works part time. But I don’t save the rest it goes on food and general expenses.

I can’t afford to save it all unfortunately.

YANBU. Child benefit is intended for the parents to help with the family budget. But it seems to be a thing on mumsnet thst it is saved to give the children when they get older. But if they can afford to save it, then I guess they can

notacooldad

I'm not even going to say what I spent my CB on, I would get shredded on here!!

Crack and cheap men?

Those days are long gone!!!😂😂😂😂😂

@notacooldad

notacooldad

I'm not even going to say what I spent my CB on, I would get shredded on here!!

Crack and cheap men?

Those days are long gone!!!😂😂😂😂😂

Nah, if you're young enough to have a child on CB there plenty of years left for that

When I lived in the UK I had planned to save all the CB for my DC like your friend is doing. Now I live in a different country which has means tested CB but it is not capped per child and is significantly more than in the UK (I get £390 pm for one DS and I am on a fairly well paid job) so I use that toward family expenses but bank every pound of CM I get from DS's dad toward his future. When I have enough I plan to buy a BTL property to safeguard DS's future. While the money would be nice to use toward family expenses I am super wary of DS being in the same position I was in my early 20's with a lot of debt and no savings. If I ever needed it, the funds are there in my name anyway (not is an ISA for DS) so I've covered both ends.

I did start out doing this as it would be nice to set aside savings for DD but it only lasted a few months as costs started to rocket especially childcare and we needed to factor the money in the family budget

I also have to pay most of it back via self assessment now too even though as a combined family income DH and I earn a lot less than siblings which is a bit painful at times 😢

Ill probably restart a savings account when DD is older - more like age 11+ when no longer have a childcare bill that's more than our mortgage 🤣😬

My brother saved all his daughters child benefit, Christmas and birthday money.

They could afford it. And she's extremely grateful now she's 21 and actually needs money. She has her house deposit already waiting for her.

Mine always went in the family pot. I would have loved to save it but as a single parent needed to use it every month

Is the problem that you’ve realised you’ve been saving less money for tour DC than she has? Her CB still goes to the family kitty, it’s just that they save a higher amount (same as child benefit) for their child(ren).

I wish I could afford to just put it away and save it!

That's strange that each child doesn't get the same amount in the U.K.!! Here in Ireland we get 140 per month per child and it's not means tested either!! But yes I save mine for my dc. My 7 yr old already has 11k and my 4yr old has about 8k.

It technically goes in the family pot, so into the joint account we both contribute to. But I personally pay £75 per month into the kids savings accounts. This will increase when they finish nursery and I have more spare cash!