Saving for children

[hearmywomanlyroar]

Hi, I would like to start savings accounts for my children but understand that if I open junior ISAs for them, the money automatically goes to them when they're 18. Does anyone know of any savings accounts where the parent keeps control until they choose to sign it over? I'm not so concerned about the interest being tax free or anything, just want to have discretion to hold the money back a year or 2 if life circumstances would make that sensible. So maybe ordinary savings accounts that are just labelled / tagged with each of my children's names? Any ideas and advice would be very welcome! Thanks

You can use your own Stocks & Shares ISA and within that have a fund which you select and consider anything in that fund is for a particular child.

Stocks and shares junior ISA with Vanguard. Very low fees. Plenty of time to allow the money to increase thru compound interest.

Then spend the time between now and 18 talking to your child about their money etc.

Give them pocket money to practice saving up to buy something. Let them get it wrong with small amounts. Show them how their money is growing. Talk to them about what it can be used for, together.

An uneducated 25 yr old is more likely to blow the lot than an educated 18 yr old.

I love the Meaningful Money Podcast...learnt loads.

I believe Barclays have a child account that reverts to the parent when the child turns 16 or 18, but when I went to open one it was such a faff with booking an appointment to do so, I didn't bother

OP - I came here to start my own thread about saving for children, so I hope you don’t mind if I add my questions here.

I already have one stocks and shares ISA with vanguard and I was hoping to start 2 more new ones for my DCs. However, when I go to ‘new account’ options, I can’t see an option to open another stocks and shared ISA account. Am I correct in assuming that I’m only allowed one account? Am I allowed to open new ones with other providers? I’m not keen on a Junior ISA since the access goes to the children at 18, and while they’re quite sensible, I really don’t know what they will do at 18.

Can I not have more than one stocks and shares ISA, as long as I make sure the total investment across them doesn’t cross the limit for a given year?

Thanks.

@InOmniaParatus42 You can only have one S&S ISA to which you are actively paying in.

Within your ISA you can use different funds, so one child could have FTSE Global All Cap, one child could have LifeStrategy 100%, and you could have LifeStrategy 80%. Something like that would be a way of you splitting up your ISA so you know what you are thinking of giving your children in the future.

I have JISAs for my kids.

Yes, the money is legally theirs when they turn 18, but they won't know about it 🤷‍♀️

I'm hoping to be able to help them financially with my own money as needed, and leave their JISA / ISAs untouched until they are older. As with anything, just need to see how it goes.

They also have a SIPP each, not much in it at the moment but plenty of time to grow.

Of course they will know about it - the provider writes to them to tell them. Unless you also plan to steal their mail?

I'd 2nd ChocolateHelps advise, or just save in your own name - you never know what the future holds. You can then gift money to them on your own timescale.

@Chasingsquirrels no but none of them have any interest in opening their mail and I don't see that changing. In which case I will just let the JISA convert to an ISA and remain as it is.

I kept mine in my name until they turned 18. Then opened a LISA in their name and am now transferring £4k a year into so the govt adds £1k

I just have separate savings accounts for them in my own name. Problem solved. I'm not telling them about the accounts until they are older and need the money.

I told mine about theirs from the start and talk to them about saving versus investing and other financial things such as credit files, mortgages, interest rates, pensions etc. This way they won't have to learn the hard way

I save into premium bonds for both my children which I can access so I could take it out before they turn 18 and put it in my account if I wanted, depending on what we decide to do with it at that point.

I also save £50 a month into a stocks and shares ISA for them. I can't access that money which is why I save a smaller amount there