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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Do you have savings accounts for your children?

80 replies

drizzleabit · 03/09/2021 14:42

I have 2 DC under 4 and have only just opened junior ISAs for them both. Are we a bit late starting this? It seems we are in mine and DH's family, as most of our family members (cousins etc.) have been saving for their DC since they were born.

We were getting a bit embarrassed as we kept on being given money for our DC's bday/Xmas gifts, but weren't able to actually put it in their own accounts and ended up spending it (especially cash as it's just gets put in a purse). We've now put all this money into their savings accounts. Is this a thing for other families? Most of my friends don't do this, they save for their DC but don't gift money or get given money as presents.

Guess my AIBU is,
YABU - this is totally normal and can't believe you've only just started saving
YANBU - this is not normal

OP posts:
lannistunut · 03/09/2021 14:45

Everyone is different, there is no need to be embarrassed. We opened small accounts in their names around age 7. This was just for the birthday money etc.

MaskingForIt · 03/09/2021 14:47

We opened a JISA, Junior current account and a SIPP for our DS when he was 6 weeks old. Family had given him cheques which needed to be paid in in his name, but we would have done it anyway, and I have started paying into his SIPP to build up a pension for him.

You’re later starting than in my milieu, but I imagine some children never have accounts opened for them.

3GreenPullups · 03/09/2021 14:50

No need to be embarrassed at all! Not late either.

we started a savings account for both ours at about that age. When they were too young we had a bank account for each in our names but they are labelled as beneficiaries (HSBC). It meant that christmas cheques in their name could be paid into that account. When they turn 11 you can get them a savings account complete with a debit card in their name (our eldest has one) and they can then be repsonsible for their own money and receive bank statements etc. When DS1 turned 11 he had a fair bit in the bank account we had opened 10 years earlier and we clearly did not want all that sent into the account he could then access so we transferred about £200 into it for his ongoing use and now his various birthday cheques etc get put into that.

Member984815 · 03/09/2021 14:51

I opened accounts when they were born put birthday money in and other money gifts they got . Because I did it for the first I did it for the rest I think plenty of people don't open accounts for their children until school age . Schools often have a savings scheme for the children where I live and that's where they mostly start

dementedpixie · 03/09/2021 14:52

Mine got child trust funds when the government gave cash towards them. They got converted into junior ISAs last year. They also have savings accounts with a local high street bank

GertrudePerkinsPaperyThing · 03/09/2021 14:53

I think it’s definitely necessary to save for them if you possibly can.

Doesn’t sound like you’ve left it late though - from now sounds fine!

dementedpixie · 03/09/2021 14:53

At 11 they can get a current account with debit card too

RiversideAnne · 03/09/2021 14:54

I don’t think you’re too late, but it’s good you’ve started! We set up an account for our baby as soon as he was born and we pay in money monthly. That means that when he turns 18 he’ll have a house deposit / uni fees / whatever.

He hasn’t had a birthday yet so hasn’t been given any money but if he is we’ll put it in his account.

MistyFrequencies · 03/09/2021 14:54

I have savings for them. I put 150 a month in for each of them. I'm lucky to be able to afford it, and it gives me a little buzz knowing they'll have a good base when they are starting out as adults. No one else I know does this, and generally they think I'm mad because we are not rich but I budget and it's worked so far ...

MerryHellbreakingloose · 03/09/2021 14:56

I opened a savings account when my son was four months old.

But, I never had one from my parents. They aren't a necessity. Any time you start one is a massive bonus.

SylvanasWindrunner · 03/09/2021 14:58

We have a savings account for DD. I put her child benefit into it and family have the details so transfer in birthday/Christmas money, and my mum often puts in amounts from time to time. She'll have a good chunk for a house deposit/travelling/whatever she wants to do when she reaches 18.

GintyMcGinty · 03/09/2021 15:03

My eldest (13) is old enough to have a Child Trust Fund (put in place by the Labour Government and abolished by the Tory/LibDem Coalition) and my youngest (9) has a Junior ISA.

We have saved into these since they were born and they will both have about £25K each by the time they turn 18. Hopefully enough for a deposit on a flat for university.

Anything is better than nothing and starting now is better than not starting.

My eldest now has a separate account for birthday money and pocket money that he can access himself.

plixy · 03/09/2021 15:06

I opened one for my daughter when she was 1 as my grandad died and she was left some money. We have added birthday and Christmas presents since. I probably wouldn't have opened it so early if I didn't have a reason to.

Frankley · 03/09/2021 15:08

I preferred not to save money for my children in their name. When they are 18 they can spend it on whatever they want to. They are not all sensible at that age and l have heard that some of them just waste it. Much to their parents dismay. By keeping it the parents name it is there when needed.and spent on sensible stuff wanted or needed. I have heard of one child spent loads on takeaway meals for her and friends.
Save birthday money etc in their name, but not any regular savings.

APurpleSquirrel · 03/09/2021 15:12

We've opened savings accounts for both our DC when they were born & have put their birthday & Christmas money into them as well as paying in a small amount into each account each month too.
We've also got Premium Bond accounts for both, & are thinking about either an JISA or Pension account for them both as they get older & the amount in their savings accounts reaches its max amount.
I know a few friends who are doing similar, & some who aren't/can't. I never had one, but I'm hoping it will give them a bit of money towards a car/Uni/house/flat etc when they're older.

lannistunut · 03/09/2021 15:16

I agree with you @Frankley

20viona · 03/09/2021 15:16

I opened a junior isa when daughter was 1 month old.

Jigsawtrain · 03/09/2021 15:20

We have a few savings accounts. One that we put their Christmas and birthday money in if they get any and another that we have a standing order to each month intended for them to spend at 18 either on university or travelling or whatever they want to do. I understand people not wanting the money in their child’s name but I think even if they fritter it that’s a teaching moment for them. It’s not a huge amount we’re saving but should be £6-8k when they’re 18. We’ll try to put some aside for House deposit in our name if we can but that will likely depend on inheritance.

Sprogonthetyne · 03/09/2021 15:24

I opened accounts for both mine a few months after they were born (when I got round to). I set up a standing order at the same time to pay a small amount in each month. We get money gifts from a few relatives, if it's larger amounts (£50+) we pay it into the account but just spend lower amounts.

We have one relative who sends £20 a couple of weeks before their birthdays, so I usually buy a toy for them to open on the day. Any other money gifts that arrives on their birthday gets pooled, and we usually get passes to an attraction.

ShoesEverywhere · 03/09/2021 15:24

I save in an ISA in my name (not a JISA) - I used to work at a stockbroker and heard some horror stories of parents livid that their child had withdrawn their cash on their 18th birthday (we send a letter to the child before then so they know how to access it) and it had all gone.

It also means if an emergency happens we can spend it before they turn 18 (unlike a JISA which can only be touched if the child has a terminal illness).

I don't save much (£40 a month for both of them at the moment) - but I figure every little helps!

lannistunut · 03/09/2021 15:24

I understand people not wanting the money in their child’s name but I think even if they fritter it that’s a teaching moment for them.

I wouldn't worry about 'frittering' but I would worry about smoking/drinking/snorting it!

roarfeckingroarr · 03/09/2021 15:25

I put between £500 and £1000 a month in DS' savings account but I'm very fortunate to be able to do so

Megan2018 · 03/09/2021 15:28

My DD has had 2 accounts from a small baby, she has an ISA that my Dad pays money in to regularly and we will add to when we are able (not at the moment) and an everyday savings account where we have saved her money for bigger presents eg we want to get a big climbing frame/swing/slide so are saving up her money for that.
I couldn’t imagine ever spending any of her money on ourselves though!

DD has about £5k in her ISA and £1500 in her savings (she’s 2). But almost all of that is gifts from grandparents.

Dizzywizz · 03/09/2021 15:29

We don’t as have too much debt, but if I could save I would save in my name only, to be handed over for uni fees/house deposit - something sensible. I had quite a few friends who got money when they were 18 that they just wasted. Tbh I would have wasted it too.

Megan2018 · 03/09/2021 15:32

@Dizzywizz

We don’t as have too much debt, but if I could save I would save in my name only, to be handed over for uni fees/house deposit - something sensible. I had quite a few friends who got money when they were 18 that they just wasted. Tbh I would have wasted it too.
We’re doing the opposite. I had a large sum at 18 (enough to fund uni and a house) in my name and didn’t touch it, used it for a house at 23. If it had been in my parents names it would have got swallowed up in their divorce. My Dad has given most of DD’s and understandably wants to make sure it’s hers and not a marital asset.
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