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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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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:

speakout · 03/09/2021 17:26

No.
As a parent of adult kids, I think it is far wiser to save money on their behalf.
Many of the child saver accounts allow access at 16/18 without your consent ,and that money may be spent on fags/tattos and beer.

londonrach · 03/09/2021 17:30

Yabu but don't worry too much. Tbh we were given money at her birth to buy clothes etc...I banked it in her name and inlaws now got £50 per month to go into her account as well as all their grandchildren...both DH and I have control of the account but it be for her education car or maybe deposit for house (if ever it gets that high). We said we might take money from account if for example she needed a musical instrument we couldn't afford to buy and she was good at it. I know my bil and sil has rented a musical instrument fir two years and over lockdown took the money from their Ds account to buy the instrument he loves to play and they can't afford to buy. Nothing else will we take the money for, it's hers.

SpicyJalfrezi · 03/09/2021 17:35

I put £30 a month in. It isn’t a lot but I’ve only just gone back to work after maternity leave so I haven’t had a lot of money.

TweedePrik · 03/09/2021 19:00

I feel slightly alarmed as we have saved religiously for dd since she was born (CB and then some) and her savings account now has more in it than I paid for my first house! I do appreciate we are very fortunate to have been able to do this.

She turns 18 next year and it's all in her name. Obviously the plan was uni costs/car/flat deposit sort of thing, but now I worry I should be putting the bulk of it elsewhere until she is a bit older! As I am abroad, tax and inheritance rules are different, so I might have to seek some advice.

Her Tony Blair trust fund has about 500 quid in it - we couldn't add to it once we moved abroad. She's planning to spend that on an interrail ticket.

IceCreamAndCandyfloss · 03/09/2021 19:13

We opened them when they were born, we add to them monthly but don’t add cash gifts from others to them as the children are free to spend that money as they wish as it was given in lieu of a gift.
We don’t plan on handing it over at 18 as I want it to go towards property.

SecretKeeper1 · 03/09/2021 19:16

This reply has been deleted

Message withdrawn at poster's request.

AJ1425 · 03/09/2021 19:16

I have account for my children that I put any money gifts into. I used to save £10 a month for my daughter but that stopped when I was on mat leave with my first, planning to restart when I'm not paying nursery fees anymore.

Its in accounts in their names at the moment because the interest rate is better but I plan on moving it back into my name when they are 15 so it doesn't get blown when they turn 16 and the account is in their control.

They are both young enough to not understand when there's money in a card, but my oldest will soon catch on and then I'll take a different approach and try and encourage her to save some as well as spending it, whilst carrying on privately with the savings I've already started.

TheRebelle · 03/09/2021 19:20

We opened accounts for them when they were born but specifically not Junior ISAs because you can’t access them then they get access to them at 18, which may or may not be a good idea depending on what they’re like at 18.

NoIDontWatchLoveIsland · 03/09/2021 19:20

We have accounts for both since a few months of birth (in reality opened just before the end of the the tax year in each case when reviewing tax allowances!)

But we are on a high income and have spare cash for this, I know many people who are on ok incomes but for various reasons just don't have the cash spare, I think that's more the norm.

AlrightThereSkippy · 03/09/2021 19:22

We started JISAs for ours when they were born, but my own (very high earning) parents never saved for us! I believe there will be some in trust when my surviving parent dies, tbf, but think that came about much later, when we were already adults.

FlumpsAreShit · 03/09/2021 19:27

We invest £100 per month, per child in an ISA in my name. This is just because with my eldest we opened a child trust fund which grandparents contributed handsomely to, it's grown well and now it looks like she will have £40k or so by 18 which will legally be hers to do as she pleases. We are trying to educate her on finances but I'm nervous about it! The others will have money ringfenced which we can then use to help with uni/housing/whatever as we see fit but at least I know it won't be spent on something frivolous.

FlumpsAreShit · 03/09/2021 19:27

Sorry in answer to your question yes we started at birth but under 4 is still brilliant!

Driftingblue · 03/09/2021 19:35

Established the week she was born. The grandparents have the account info and just add money directly when they want to give a long-term financial gift. We have an automatic transfer set up every month out of our own account. Dd also started her own savings account once she was old enough. That money she is allowed to access if she chooses. She puts most of her allowance and cash birthday gifts into her savings because she is frugal by nature and prefers to save for a few big purchases.

LubaLuca · 03/09/2021 19:44

Yes, they have accounts all over the place, but it's an occupational hazard for me. I've always been determined to have saved enough to make a difference to them when they need it.

The only savings I had when I left home were the few hundred I'd saved from my Saturday jobs during 6th form. I went to university with people whose parents had thought ahead which really opened my eyes to the possibilities. Not that I think my parents owed me anything - I was 18 and left home with the intention of never asking them for anything, but then nether did those friends ask for or expect anything.

We couldn't save much when they were young because I didn't work, but even then I used saving as a little learning tool. Get a building society book for them to look at and see how interest is earned, compare their balance to the cost of things they'd really like, set a little target to get to etc. I think it's important for children to have their own pocket money (including money given to them as a present) savings that they can access, instead of putting it all in bonds or ISAs.

qualitygirl · 03/09/2021 19:51

Everyone is different I suppose. But most people I know save the child benefit. I save the child benefit for each of them as we earn over 100k between us so I don't actually need it for know. I aim to use it for university or as a house deposit for them.

Tigerwhocameforsupper · 03/09/2021 19:53

My 2 and 4 year olds don’t have their own savings accounts. We just have a family savings pot that it all goes into. Their birthday or Xmas money gets spent on days out or things they want to buy.

ShanghaiDiva · 03/09/2021 19:54

Mine have had savings accounts since birth.
Imo if you want them to spend wisely, invest and look after their money then teach them about money. The popular opinion on here seems to be to deny access which is ridiculous imo.

PetuniaButterworth · 03/09/2021 21:23

DD was born early and in the middle of lockdown last year. Very few shops where open so most people gave money instead of gifts we ended up with over £1k. I've invested it in premium bonds for her, at least until the interest rate in ISA / Savings accounts improve a bit and I quite enjoy checking the app each month to see if she's won anything.

PurpleFlower1983 · 03/09/2021 21:25

We opened ours when they were just born, all money they are given goes in there.

UrgentHelpforFriend · 03/09/2021 21:55

I couidnt afford to save for the for years and years.

Then I was able to do £10 a month then £30.

I stopped once that built up to a few £100.

They have a cash isa which has dropped in rates from about 3% to 1%. And we have stock's and shares isa which is tearing along.

Running between 10 and 20%.

I've kept the cash one as a buffer for a new car... Lessons... Money at uni that sort of thing. The second one is capital.

UrgentHelpforFriend · 03/09/2021 21:57

I am going to open a sipp soon actually.. As I face retirement soonish... Rather than later ish I wish I had a lump sum to access!!

Also putting it into a sipp now gives it so much time to grow and they can then be encouraged from a young age to pop £10 in each month or into the isa etc.

Marmite27 · 03/09/2021 22:01

I opened accounts for mine as soon as I had their birth certs.

Any money they’ve got for birthdays, celebrations, from grandparents etc have gone in there along with £100 a month each.

They both have big and little purses. The little purses have £5 on change in so they can purchase the odd thing themselves. Anything over £5 goes into the big purse. Big purses are maxed out at £25 and then it goes into their accounts.

Tbh they don’t need much cash as they’re 3 and 5! However they like paying for things themselves. We were out a while ago and I refused to buy yet another cuddly, so the 3 year old said she’d use her own money, and became the proud owner of a grandad pig cuddly toy.

ElephantandGrasshopper · 03/09/2021 22:12

I opened accounts for both when they were born, but only started paying in regularly when the youngest started school (and we didn't have nursery fees.).

If the savings accounts are in my kids names, can I change them into my name before my children turn 16, if I don't want them to have the money straight away?

I would not have spent the money wisely when I was 16

Bazavit · 28/11/2024 14:37

My son had the Child trust fund so we just kept adding to that ..it's in a stocks and shares one and been fine so far and not lost.. he can draw it out when he's 18 .. he doesn't know about it but hfully it will go toward uni, travelling or a car! He has a part time job alongside college (worked from 14)and i dont want him thinking oh its ok ..i have money coming !My daughter was born 10 years later so opened a junior Isa for her with a certain rate ..but we put more into it monthly as obv everything will be more expensive 10 years later. It won't be enough to set them up buying a house etc but something for them. My parents never did it for me and I never missed it but just wanted to do it for our kids .. just hoping they don't blow it on silly things ! Won't let onto our daughter about her saving account either.. so yes if you can afford it try and set one up from birth..but if you can't then you can't and nothing to be ashamed of.

Bazavit · 28/11/2024 14:45

SpicyJalfrezi · 03/09/2021 17:35

I put £30 a month in. It isn’t a lot but I’ve only just gone back to work after maternity leave so I haven’t had a lot of money.

Same.. £10 for my son who can access it when he's 18..he's 16 now.. and £30 for my daughter as there's 10 years between them..it'll be a nice amount to buy a car, travel or help with uni but obv won't be life changing as in enough to buy a house etc but you do what you can for your kids. Only worry is will.they blow it at 18 and with ours it's only them who can take access it and take it out..we haven't let them know 😉 x

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