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?

@Sugartitties how do you get so much? It’s limited to two children isn’t it?

DS's goes into a savings account we round it up to £100 a month, we don't need it, but we also don't live a lavish lifestyle or have flashy cars. He will get it when he's older towards his first property/car or something, not just to be spent on partying etc. We don't earn a huge income, but we've chosen to only have one child and that allows us to be comfortable.

Some months when we’re tight we have to just let it roll into our monthly spending but I feel bad when this happens

Don't feel bad, your little one also benefits from a roof over their head, food, and other stuff that bills etc go on; so it is still going towards them.

@Awkwarddough I'm assuming that @Sugartitties was entitled before the rules, rightly, changed

[quote Awkwarddough]@Sugartitties how do you get so much? It’s limited to two children isn’t it?[/quote]
I thought that was TC not CB. I'm assuming Sugartitties has 9 or 10 children within the qualifying ages.

I save it in one child's account and then change the bank details to the other child every few years so it balances out.. having a third soon and will do the same.. could do with the money really as we are quite poor but you dont miss what you dont have plus feel better knowing it will be put to a greater cause one day

I use it for school trips and things like that. Directly for the kids.

I would love to save it once by baby is born but we won't even get it.

@SleepingStandingUp

Aren't they the same thing?

@roarfeckingroarr

Is that because you or DH earn over 50k?

Yup

i put in CB and some child tax into both of my kids account, im saving about £150 a month each child.

I wouldnt if i couldnt afford it

[quote 2155User]@SleepingStandingUp

Aren't they the same thing?[/quote]
No. Child Benefit is £20 something for the first child and £13 for subsequent ones. Tax credits is split into working and family tax credits tapered on household income. I get alternate payments for CB and CTC

We save ours for our kids and will make sure that they both get the same in future. We started saving towards uni as soon as DS1 born and will do same for DS2 as I’ll be 58 when DS1 hits 18 and don’t want to be staring down the barrel of uni fees. So it goes in a savings account in his name (along with extra that we save for him monthly) then at intervals DH invests it in funds etc via an investment account also in his name.

At the moment it just gets swallowed up into our bank accounts but I went to school with someone who was given it as an allowance (from high school sort of age) but her mum bought her only the very basic necessities. So she was in charge of buying all her own clothes; extra toiletries like makeup, fancy shampoo; going out with friends. I would like to do similar once my baby I s older, I think it would be a really good introduction to budgeting.

@SleepingStandingUp

Ahhh ok thank you for explaining!

I think every family does it differently. There is no right or wrong answer.
We try to save ours towards our annual family holiday

Goes in the family pot. I figure it keeps them in formula, nappies and clothes.

I used to save for our annual holiday

[quote 2155User]@SleepingStandingUp

Ahhh ok thank you for explaining![/quote]
I think if you get UC it might ask be out in together, not sure as we have the disability element of TC then multiples so it's remained separate

@SleepingStandingUp

I only get the £20 a week thing.

Although I do feel guilty getting it as we really don't need it and I do feel it would be better spent on other people

DS CB goes into the account where all the bills go from but then the standing order to his savings go from there anyway.

I’ve never done anything particular with it. It goes into my account and I often buy things for DD from my account so 🤷‍♀️

It completely depends on your financial situation.

It's pretty normal to put it in an account for the child/children if you don't need it. It's a nice little nest egg for them when they're older.

Our CB goes into DS's savings account each month. We are abroad and get twice as much here as we did back in the UK. His CB from the UK is still in his savings account there and now gets added to by his grandparents.
Once we've got a second one, we'll set up another account and do the same for that child. It will balance out eventually.
We are lucky that we don't need it at the moment but we didn't pay it into his account for about a year while we were between properties, having just moved countries and money was tight. It really depends on the situation.