How are you saving money for your children?

[TheBeesKnee]

I have 2 DC - 2 years and 3 weeks. They have just received bits and bobs of cash for birthdays and I'm now left holding £600 for each of them.

I don't want to waste it on toys and living expenses and would like to use it to jump start saving for their futures. I think we would be able to contribute £50 per month to each child initially and probably more when we're not paying for nursery fees.

I've considered a savings account in my name, an NS&I junior ISA in their names.

But interested in what people are actually doing!

Both of our parents gave us cash when we turned 18 so it's something we're keen to replicate.

@heroinechic thank you. I honestly did not think of this so I’m glad I read this thread! If my children are anything like me, the money will not be well spent at 18!

The bank will contact them when they are 16 and you lose access when they turn 18.
Unless you want to commit fraud by impersonating your children and by letting the bank think they gave access to the child when, in fact, they gave access to you, then no, there is no way you can prevent your children from knowing about the JISA

For those who say you can teach your children to be responsible: it remains a risk.
The world is full of siblings with the same DNA, same education, same environment, same everything, yet one turns out to be sensible, the other doesn't.

I'm not saying don't open JISAs, I have opened them, I'm saying be mindful of the risks.

Buy Premium Bonds. It's exciting every month to see if you've won. You certainly won't lose anything.

I put £15 a month into a child saver account for my grandson. He didn’t know it existed and I didn’t want him to fritter it away. My mum had left him some money in her will which he was able to buy a car with so that was the only thing he actually needed. I decided not to give it to him on his 18th (or 19th actually ) I wanted him to spend it on something sensible. Last Christmas he told us he was planning to go travelling with his girlfriend. They both had 2 jobs and were saving hard. We gave him a copy of the account we had set up for him and told him we wanted him to use the money for his trip. He and his girlfriend are currently 3 months into a 5 month trip and have sent us photos and videos and messages and are having an amazing time.

If you put money into your own ISA on their behalf (per another’s post) then you will use up your limit each year. If you fully subscribe £20k each year then you will have less for your own tax free investments / savings.

We use a JISA and also put a little into a JSIPP for our children. They are both under no illusions that it is their responsibility when they are able to access it and if they blow it on frivolous stuff then it won’t be replaced. I guess ultimately it comes down to whether you want to educate them to be responsible or not…

I think you can educate to be responsible all you like, but outside influences and hormones can have a big impact age 16-21.