Set up a Junior ISA

[HeidiHunter]

Preferably a stocks and shares ISA for your own kids.

There are pros and cons to them from my perspective. Obviously tax efficient, and if all goes well then it gives your child a leg up for uni fees or housing. On the flip side, I am not comfortable with an 18 year old having unrestricted access to such a large pot of money. I have several uni friends who come into large sums at 18 and about a third made good use, a third to a half frittered it away to some extent, and a small proportion it made their lives worse (fed addictive behaviour, made them targets of the wrong sort of people).

I prefer the us equivalent of junior isa where full access is not allowed until 25, but 18-25 it can be used for education. I likewise have family trusts in place that graduate access. Although legally adults, 18 year old brains are still developing impulse control and decision making and most kids would make better decisions with a life changing sum of money at 25\30 than they would at 18.

mine do have junior ISAs, mostly due to gp contributions (we are saving for dcvia different mechanisms), and I am deeply nervous about how a six figure slush fund will affect them at such a formative period of early adulthood.

Absolutely don't set up anything that your child can get their hands on when they turn 18, I've just watched my 18 year piss £14k up the wall in less than 2 months.If I had my time again, I would have set up an s&s account for them with a bit of money in and then put the rest in my own account which I would hand over when they wanted a house deposit

My son is getting a Junior SIPP to start his pension. Even 10k by 18 should make a 50k contribution to the pension pot by retirement easily.

Other investments are all sitting with me.

just as there is a trending post of lady’s 50k wasted!! wish there was a way to make it older age! hate how it becomes theirs at 18, wayyyyy to young

I know someone who was super responsible, waited, didn’t waste it but their partner took it and wasted it

another one is my dads friends kid.

such a good nice kid, training to be doctor, got hooked on ketamine and now an addict and isn’t working or studying, complete drug addict who turned to crime

i would do just jsipp instead

the compound interest would be amazing on that. And the tax relief is great.

or have it in my name

many 18 year olds can’t be trusted with large amounts of money. It’s a ludicrous idea. I want to set pensions up for my 2 soon

Our son has a JISA and when he is 18 we will intercept the letter so he doesn't find out about it. When he is 25 he will have a significantly large house deposit.