AIBU to avoid junior ISAs because children get access at 18?

[flipfloplaugh]

I was about to start a junior ISA for my kids when I realised they would get the money no strings attached at 18. That's insane!! They're small at the moment, and I have no idea what they will be like at 18... I would have probably wasted a bit of it at 18, but several of my friends would have blown it all almost instantly on absolute nonsense. The v few people I know who have trust funds have trustees to stop daft usage and don't get the money until at least 25 and possibly later. Why on earth would I save money now to have it potentially wasted by some dingbat 18 year old??

Agree with this. I save into the jisa even though not maxing my own isa. Also despite being higher tax payers currently, never know what is around the corner and before could claim benefits would be expected to use any savings in our name or under our control. So it is protected in their name if that happens too. If they blow it all at 18 there won't be any more coming!!

I agree. My OH saved a lot for his son and at 18, he went off the rails, no contact and suddenly his bank account was closed and emptied with no notice.
Only word of caution would be if you save in your own name, think about divorce, you would want to ring fence as kids savings. My friend did this and her horrible ex husband took the savings over and spent them on a garden refurb “for the benefit of their daughter”. Horrible.

Following this thread with interest. DDs have inherited a modest sum each from my dear late dad and I don’t know where to put it - I’d be happy for them to take it at 25 (but not 18)

If it wasn't stipulated in the will, it's legally theirs to access at 18, you can't legally put it somewhere to prevent access until 25. So there's nothing you can do (except educate them to be sensible).

This is exactly what I did & glad I did as one of my sons would’ve spent it all on computer stuff like he did with his child trust fund money!

That’s really great - I worry for my nephew as I’m trying to plan for him (17, ADHD and dyspraxia). He is keen on saving but towards some ridiculously expensive sports car! His downfall - bless him - is treating friends when he does have money.

I got my savings from my great-grandma released to me at 18. I did waste it (only a small amount, about £1000 in the '90s) but it taught me not to do it again as an adult, I've never been in debt and I think it was a good lesson. My DC have some money in their savings, but we more want to be like my parents were - save it ourselves, and gift it to them as and when they need it, then you have control over when and how much they get. But my DS looks to be sensible, he's not a spender and regularly transfers pocket money to savings. DD looks like she will be a borrower, spending money she doesn't have.

I would hope that with enough conversations beforehand about that money I.e “this has taken many years of our lives to save and once it’s gone it’s gone, there is no more that will replace it” sort of thing…that my DD will be sensible with its use. I don’t pay in loads, £50 a month.

I felt the same so instead opening a bare trust account in AJ Bell thats in my name but for their benefit. Only I can access it but its clearly being used for each of my children as they are named on it too.

2 of my DC are now over 18 & I used their accounts to buy them a car each & the rest of of it will be used to contribute to their house deposit when they move out.

Having seen what some of my DCs friends spent their money on when they got access to their JISA that their parents had saved hard for Im so glad mine didn't have this option!!

@ShanghaiDiva there are 3 possible explanations for your post.

1. you don’t have kids at all
2. you have adult kids, and got lucky, as they’re good with money
3. you have younger kids, and know nothing about teenagers.

If being alive for 58 years, and being a parent (and on MN) for 21 years has taught me anything, it’s taught me that you really really don’t know how your kids will turn out. Yes of course if you give them a crappy abusive upbringing, they’re more likely to make bad decisions when they’re older. But the majority of people who take a destructive path had perfectly normal decent childhoods.

You can teach them about money and compound interest and saving etc etc as much as you like. But when they go through puberty their brains are completely re-wired, and you have no control over the person they become.

The smugness of some parents on here is mind-blowing!

@Bimblebombles how old is your daughter?

My parents had a savings account in their name that they used for me and my brother in adulthood, for example when we got our own houses, my brother got his first car or when I had my first child and needed the money for home improvements. They volunteered to put the money towards major events as and when they happened so we didn't waste it especially when we were young adults.

My eldest had a Child Trust Fund which was in her Dad's name until she turned 18, once it moved over to her I had to go through Court of Protection to be able to access it due to her being disabled and having no concept of money. Had things been different, I would have encouraged her to use it towards university or getting her own house etc rather than having it straight away and spending it or letting others take advantage. My younger daughter has an ISA from her Grandparents on her Dad's side and once she is 18 and it goes in her name, I would advise the same.

We are living with this at the moment. I did not realise my idiot partner was putting money into the ISA. Neurodiverse child got a big lump sum at 18. They write directly to the child so you can't intervene. They have now dropped out of uni and are living on it. I'm furious what a waste

7 😂 I know, I know. I’m naive. But it’s from a place of some experience because I came into a lump of money when I was barely out of my teenage years with the express instructions from my mother (drilled into me) that it was not to be frittered away under any circumstances, so I bought a house. We grew up in a low income household, I knew there would not be more where it came from. My parents were very cautious, financially, and I think I picked up on that.

I've brought up two in exactly the same way with exactly the same values. I have one who saves and I can completely trust with money, and one who can't be trusted to save a pound! So it's as much about the individual kid, as how you've brought them up

@Bimblebombles But your child is not you. The teenager and young adult that I was, is very very different from the teenager and young adult I’m a parent of. I brought them up with all the same values, and yes they share most of these with me, but there are fundamental differences between us.

The thing is, you don’t have to be a total waster druggie to “waste” money. The things that 18 year olds think are important are generally not the same as the things 25 year olds think are important.

For example, an 18 year old could say “Mum, Dad, I really appreciate the sacrifices you made to save money for me, and so I’m not going to waste it on rubbish. I’m going to use it to treat all my friends to the holiday of a lifetime, travelling the world for a couple of months before we all go to uni. None of them have any money, but thanks to my wonderful parents, I can afford to pay for everyone. And you always taught me to be considerate and kind”. In their mind this would be a kind and sensible use of the cash. Meanwhile parents would be despairing!

My children's grandparents have been paying into a junior isa for both of my children for years. They have 20k each at the moment. And they are fast approaching 18.
This is also my fear and worry. My son is impulsive, very materialistic and will not use his wisely no matter what we say.
Our daughter is sensible and already saves her own money aswell. Couldn't predict what he was going to end up like

It’s prudent. I’m planning to give my (primary age) nephews a gift when they’re older but I don’t see them being responsible at 18. I have 2 friends who came into money at that age. One bought a house outright and invested the rest into a pension and will retire very early. The other took her friends on holiday and blew the lot living like a celebrity for a few years. Similar backgrounds, education etc. You just can’t call it when they’re little.

Yes, but this is exactly my point. You were earning and spending your own money. Not a chunk randomly handed to you. That's a much better way to learn!

Thank you. It’s not gifted by will. It’s a proposed pay out from a trust and we (the adult beneficiaries) can choose who it’s paid to (subject to the trustees’ approval). This thread is really helpful and I think I’ll hold it on their behalf until they turn 25.

Same principal with things like inheritance - I know people in their 40's, 50's, 60's etc who are terrible with money, yet they can sometimes inherit hundreds of thousands...What age would you be comfortable with?

I have teens one who is very responsible and the other who at the moment would spaff it all up the wall on fun and stuff. That might change as he matures.

They know vaguely about their accounts but they have no idea how much is in them. If the provider writes to them age 18 - they literally never look at the post, they never get any so they are simply not interested. Ill be hanging on to the control of the accounts until they leave uni and after that I will offer them up for house deposits only.

I max my own ISAs so I have been filling theirs up because it’s a tax efficient way of saving.

My parents wasted thousands during their retirement on collectibles, antiques, cruises ( so much they got bored , flew home then booked another one a year later)!
I'm currently decluttering their house, attic and sheds of decades of consumerism in all the fashions.
And yet they were almost gleeful to see me scrapping away in my 20s as a positive character building the in my life.
My kids have full LISAs, rainy day funds, fun money and day to day spends. It gives me so much joy to hear their delight in increasing their net worth and appreciating the odd lump of money when I can spare.

If you do this you are committing financial fraud/abuse.
Control of JISA & CTFs must pass to the child on their 18th birthday except in very specific circumstances such as death or terminal illness. If they lack capacity you can apply to the Court of Protection to manage the account on their behalf.
Honestly the number of people on this thread who think that the law doesn't apply to them is scary!
THE RULES !!!

Bloody hell, what a depressing and ageist comment!