Kid/kids savings account

[Chickpea17]

Me and my husband had a savings account for our soon to be 5 year old daughter which we put money in every month and ever year my mum gets her a little present and also £50 which go straight into my daughters savings account.

Anyway was sat down talking to mum today about my daughter and the conversation came up that me and my husband have specific what she can spend the money when she older 25% on what ever she like and 75% and more practical stuff on university if she decides to go.

My mum was extremely upset and said the money is my daughters, and we don't have a say what she gets to spend it on when she older. Am I being unreasonable?

We already started finance learning but that's doesn't guarantee when she turns 18 she won't spend it all on crap. So we just want to to make sure she has money for her future.

You don't want to put these savings into cash!

Put it into a Junior Stocks and Shares ISA - something simple and straightforward like a Vanguard tracker.

Since she is unlikely to access to proceeds the savings for many years it is definitely worth it.

I agree with you OP, to the extent that 100% of the money should be used towards a house deposit, maybe a car and not just pissed up the wall.

My kids have saver accounts and all birthday and Xmas money goes there because they honestly do not need any more stuff and as they are young, they don't notice it anyway. I also round it up to the next £10 each month after the interest is paid, so whilst it may not be loads, it's slowly going up!

It’s her money so much as you can try to influence her ultimately you get zero say in how it’s spent. Controversial I know but that’s why my kids don’t have savings accounts. There is money earmarked for school fees, university and house deposits but no way would I put any of it into their names. And it’s also daft to have it in cash when it could be invested. Eldest is 6 so we’ll probably get her a Revolut card or similar for pocket money spends soon but that will be it.

We don't want to put it in a junior share ISA. We want a save not invest ISA we decided that at the time when we open her account.

Me and my husband have decided to put money into account in my name which we will gift our daughter when will feel she responsible enough.

The money that's already in her saver ISA she can have when she 18.

Oh wow, I need to check what accounts we have for our children, as we are saving specifically for house deposits for them.

I wouldn't want to hand over a stack of money to them at 18 😬

Hi op I'm not disagreeing with you.

There have been multiple threads on this over the years with stories of fortunes lost and someone good savers too.

I wanted to point out that on here and in rl i find an absolute lack of any financial education for dc...

My cousin had something similar and moaned when her complete financially illiterate 18 year old spent all his money on crap. But she's never ever shared her money tips, advise.. Showed him how to invest etc.

So how would he know?

Re you don't want to invest?

Why not?

You can gift up to £3000 annually with no tax implications.

Yes I completely understand what you're saying children do need to be educating on spending and saving.

Me and my husband already have stock and shares and our daughter will inherit quite a large sum of money upon our death's hopefully.

But I'm not interested in playing with stock market with my daughter money that's one thing I want to be 100% sure about.
Never good to put all your apples in one basket in my opinion but thing are forever changing so best to keep a open mind too.

Yeah I know it's scary this being a parent thing can be a right pain you never know what to do for the best lol

Thank you

My daughter is 16. I’ve done the same and it’s in her name. She saves well. It’s for a house and she knows that and she’s good with it and adding to it. Bring them up sensibly and they will be sensible.

Ps both of mine squirrel away money and we’re taught to save from an early age.

We have two Junior Cash ISAs for our 4 and 2 year olds. We’ve decided to cap them at £12-15k each as at 18 they can do what they like with it.

We have a separate account to save for uni etc.

When DD was little everything went into one account. As she grew up, I opened a second savings account for her, so she has one long term that I pay into every month, and another that is for birthday , Christmas money etc, that she can spend. Once she is 18 it will all be hers and I will have no control over it, but hopefully she will make wise choices because she understands the value of money.

We want to save for her to go university, house and car.

Anything else she wants me and her dad will pay for it.
She are only child and we won't be having anymore.
Me and my husband had her quite late in life to make sure we were very financially sound before having her.

We will get her another account when she older for spending money.

But I want her to have a saving account for more practical stuff that's she can just spend on crap so will start a account in my name and put money into until me and my husband decided that she is mature enough to spend it on the right things