AIBU to ask how much you save for your kids over the year compared to what you spend at Christmas

[GordonsAliveAndEatsPies]

This has been triggered by the "what do you spend on your kids at Christmas" thread, because looking at the figures I would say we spend less than the top figures on each DC but definitely save quite a lot more "on behalf" of each child when you add up pensions, Isa's and pocket money.

I am just wondering if we are unusual in our thinking? Is it about putting money in their names (which I certainly understand is something we will have to cross when time comes) or is it something else?

BTW I am aware this is a sensitive subject and we are lucky we can do this and it's certainly not meant to be goady.

It’s all a juggle, isn’t it? If you can only afford to save £20 a month, I can see why you’d spend most of that in the here and now for your kids rather than saving for the long-term
This. We are not high earners. We have to save for Christmas presents it isn't spare cash.
I save €10 a month x 2 started last year so €120 a year / spend €500/600 at Christmas they don't get holidays abroad so it is our yearly splash out.
Thankfully I will have inheritance money in future my intention is to give them €15,000 each towards college.

Kremeshe offhand I think it's family assurances? But that might be a different one. It got sold on a few years ago by the bank we took it out with so I can't remember the details. You can see I am very on top of it

@snog yes we have since birth. We are lucky that our dd8 has about £40k so far and dd5 £28k across different investment vehicles. New one on the way so just getting ready to sort out a new stream for him too. But then my parents did the same for me and DS so it wouldn't have occured for us to do any different.

However, it's just so interesting to see people's mindsets as so many people seem to splash out for Christmas but you wonder if they would think about a long term savings plan. I even saw one thread where someone just wanted to know the going rate for pocket money and so many posters came back with none because "they don't need it" or "we spend enough".

However, it's just so interesting to see people's mindsets as so many people seem to splash out for Christmas but you wonder if they would think about a long term savings plan
That is not interesting it is simply social economics. Those who save throughout the year and spend wisely at Christmas usually have a holiday or expensive hobbies, bikes or equipment bought when needed no occasion necessary.
It is not new news WC people over do it at Christmas as there isn't many moments of celebrations throughout the year.

However, it's just so interesting to see people's mindsets as so many people seem to splash out for Christmas but you wonder if they would think about a long term savings plan.

That's a little disingenuous, is it really hard to understand why some spend loads. Most people even if they would like too can't save thousands for their child.

@ScrapThatThen thank you. I don't investigate enough.

We save 2000 a month for each child living at home plus quite a bit for presents throughout the year. But they also start working at 14

@Hotelhelp

How is someone getting £140 per month per child child benefit?

We don’t save for the kids and do spend a lot at Christmas.

My parents never saved for me but did give me a lump sum to put down as a deposit after they received their inheritance.

I might start some savings for them but tbh would rather give them a nice life now.

£20 a week for the first child and £17 a week for the second child = £158 per month.

I also dont save, I expect my children to leave to save themselves and live within their means like I and everyone else I know had too and not just expect life to be handed to them on a silver platter forever.

You arent suppose to 'save' child benefit long term, its suppose to be used to enrich the child life through childhood (clubs/hobbies, holidays, birthdays, xmases) and to even the playing feild so no child is left behind - its expressly NOT for paying morgages or saving to give a lumpsum of cash to an adult to buy a house.

@mam0918 no one specifies what it can or can't be spent on!

We save about 6k a year per child I think. Spend less than £100 each at Christmas.

We save more over the year than we spend on presents. Only one DC so we save about £100 a months for her and she already has a savings account, good and some investments that we have taken out on her behalf.

She doesn’t actually want much at the moment so I tend to only buy a few things for birthdays. She gets presents from others as well so I would rather she wasn’t overwhelmed with gifts, therefore devaluing each gift.

For context- DH and I feel we were never properly taught about finance and have lived really frugally for about a decade to dig ourselves out of massive credit card debit and save enough for a house deposit. They way I think about money has really changed over the years. We now save up for all purchases and don’t have any lines of credit bar the mortgage.

We have probably spent £800 on DS8 this year- loads more than normal to be honest. He only wanted one thing which was Lego Diagon Alley but we got him Attack on the Burrow with Lego points also, plus books, clothes, advent stuff, stocking stuff and an Echo Dot on prime day.
We have spent nothing on days out (just booked to walk around country parks we have passes to already) whereas last year we went to the HP studios and stayed in London, so less presents but a family experience.
We save £3k for him into a savings account per year and another £3k goes into his pension from my parents. There is a trust as well but that’s for his education and is joint with me. I don’t spend it though It probably amounts to £15k per year in but school fees go out.

Spend maybe £300 between 2 children.

Save nothing. We have household savings to pay for things like repairs and maintenance. And nothing left over. We can either have nice things or save for the kids. I'm probably too selfish to save for the kids. I'd rather be able to buy clothes and shoes and treat them than scrimp and scrape at the moment.

So no savings for them. None. I didn't get a fund for moving out or paying for uni. My parents spent their retirement lump sums on themselves. There was no money for a deposit. Or a car. My dad surreptitiously passed me £300 when our oven died 3 days before my 40th birthday this year. That was the single biggest gift my parents have given me since I turned 18 and they gave me £1,000 and I spent it on a uni field trip, uni books, cigs, vodka and a leather jacket.

I think a lot of it depends on ages as well. If you have £100 to spend on a baby then it makes a lot more sense to buy £10 of shiny tat and put £90 away for the future. For an older child you may be more inclined to spend the whole £100 on something they’ll enjoy and appreciate - especially if, as others have said, you may need to say “No” quite often at other times of year.

I tend to spend more at Christmas than birthdays. I save in CTF around £100pm. I also match and savings DS puts into his trust fund from birthday monies.

@NeonIcedcoffee

Wow! So this is how privilege works!

I don't get what you are saying.

It’s all relevant to like I want to give the kids stuff now as well in the future to although i am money savvy all year sound apart from Xmas.
My DS wanted parts for his PC and a ps5 which he has for aswell as sports equipment for his hobbies.

DD seven wanted a new electric piano and new electric drum kit which she loves music.

Plus other bits and bobs I have spent way over 100.00 🤣

But I don’t buy for then all year. They get one eating out a month. We live pretty savvy all year then blow out for Xmas and birthdays ( same month )

OP I think saving into pensions for your dc is the preserve of a minority of the population ie the rich and priviledged, it's not mainstream behaviour. Surely you are aware of this?

For the vast majority deciding between spending a little more money on Xmas gifts or creating pensions for their children's retirement is not a relevant choice in life.

I believe that just 1% of families have pensions for their dc

That's a little disingenuous, is it really hard to understand why some spend loads
This.
Spit it out OP no need to act disingenuous.
I'd bet you are looking at this situation from a comfortable financial position.

mam0918 there is no stipulation as to what Child Benefit is spent on.

Ours was all spent on rent and bills when we were children, it had to be unless we wanted to be homeless.

We're in a fortunate enough position to save our dc's but it's in my name. I hope to be able to give them a lump sum when they're adults, but it's also very much a slush fund in case things go pear shape for us financially.

I never said anything other than I am financially comfortable so I don't need to "spit anything out". I did say in my OP I am aware we are lucky we can do this.

It was triggered by a thread where people are spending over £1,000 per DC on Christmas (so there must be some slack in the household budget) and I was wondering if I was alone in saving more over the year than I spend at Christmas. And I'm not. That's it really.

I read the OP as what do you save vs spend but the last post by the OP seemed incredibly patronising.

I mean I live in a bit of a bubble but I'm fully aware of that & know diversified investment streams are not the normal for adults let alone children.

I have a Christmas savings account I put a standing order of £25 per month into, so £300 per year- that’s for one DD’s presents plus other family presents (my parents, my sister, my Grandma). I am pregnant, due March so by next Christmas I’ll have another DC so will probably up the amount a little!

I have a children’s ISA for my DD and her dad (exH) each put £40 a month so £80 per month total, making £960 per year. That’s for when she older, probably 18 or so to use towards Uni or to buy a car or go travelling or something like that.

My 9 yr old has has 54K saved and we spend about £500 on xmas. Saving for the future is more important and I would cut back on xmas if we couldn't save for that. But 9 year old will inherit a house as well so she's ok either way