Teens and investing / saving

[Orangesandlemons77]

I have a 18 yr old and a 15 yr old and thinking about saving for the future. I just wondered if others wanted to share ideas of what has worked for them.

This is what we have done so far. They both have the child trust funds started by the Labour gov and we have been adding to these over the years along with a bit from grandparents. They should each have around 12K in these.

The eldest has done a year in full time work while living at home and will also have some money saved from that, although he has also taken e.g. weekly driving lessons, paid for things like monthly phone, dental plan, and some expenses such as clothes during this time. It's minimum wage but that is 40 hrs a week and some overtime has been paid more. So maybe around another 10K?

So far we had a meeting with a financial advisor as part of his CTF ending and she talked about putting money into a LISA (£4000 a year can be paid in and then £1000 is added by the gov) so he did this last year and probably will this year. Some of the rest he has put into an ISA.

He's about to apply for student funding for university starting after the Summer (deferred place from last year) He'll be living at hime, and with his savings would have no need to take the maintenance loan however wondering whether to take it and invest / save it might be a good idea?

I think the long term plan is that in a few years time we should have some inheritance from grandparents and if each child had £100K from this maybe together with the savings might be able to afford a flat (together?) and this might start them on the property ladder.

They don't need ISAs if not tax payers and better rates available outsde of ISAs, unless you are in S&S ISAa.
LISA is different and probably worthwhile.

I can't comment on student loans as I know they are different now. My DC were on the previous scheme and it was better to take the loan.
We gave them a lump sum instead of paying their student fees and maintenance which they have since used as house deposits.

Most importantly teach them about investing and finance.

I work in investing (and also have a separate business teaching teens about money management and investing for their D of E courses). ISAs are great tax wrappers but, as PPs have said, not so much for cash ISAs if you're not a tax payer.

My kids have stocks and shares ISAs and, for my eldest, also a Lifetime ISA for the top-up benefit. There are so many free resources available to help you choose your investments and some of the teenagers I've worked with have been fantastic at picking theirs wisely. I think partly as they don't have the hang up about investing that some adults do.

Worth keeping an eye on fees as they can erode your pot by more than you think. HL scrapped all trading and platform fees on their junior ISAs last year so they're hard to beat, or AJ Bell are a good provider (or interactive investor for larger pots as they have a fixed fee, not a percentage).

Thanks for the replies. Yes, he will have been a taxpayer this year as working full time.

Sorry, should have said high rate tax payer. Unless he's getting over £1000 in interest.