How much do you save for your DC?

[Chocolattcoffeecup]

How much are you saving for your DC and how are you saving it?

I saved £25-£100 a month each (£100 was during covid when we weren't going anywhere!). Oldest about to get c£10k on 18th birthday

Question for people with multiple DC, will you try to make their savings equal?

Of my DNs some got CTF and others didn't. None was huge so easy enough to make it more equal.

Thanks for this thread. I’ve had in the back on my mind (and one in my hundreds of browser windows open on my phone) plans to open a pension for the kids. This has cemented how important it is.

sorry to those not in a position to save much for their kids. But it doesn’t make the thread any less worthwhile just because not everyone benefits from it. As others have said my daughter may have spent her generous sum at 18 on coke and hookers and may have never worked. She may be unable to work due to caring for aging parents at 30 so good that this thread has inspired me to finally get a decent pension sorted for her.

Yes, we will try to equalise it.

I made the mistake quite early on of buying different underlying investments within each DC's JISA as part of my attempt to diversify the whole family portfolio. I've managed to close the gap there to under about £600 but since then I've made sure that whatever I buy for one, I buy for the other (and my metric is number of shares, not value...)

My DC are 30 months apart and since we began investing for both at the same time, the values will be different on each of their 18th birthdays. Unless circumstances change I'll simply make up the difference when the second one turns 18.

Nothing to give to them directly but they will leave college/university with no debt as you are legally responsible for your children financially up to 23 where we live, if they are in full time education, so we pay fees, accommodation and living expenses.

We put £5k into a junior stocks and shares ISA before they were 1, and this gets topped up from relatives if they're given cash for Christmas/birthdays. They also get a set amount of pocket money each month and can choose to invest some if they wish.

Outside of that I save £50 a month for them just into a junior saver when I can (currently on mat leave so it's on hold). I was planning to give them access to these accounts when they start to want things like mobile phones and cars. It's just tipped over £1k each and am considering moving it into the ISA instead so it grows more but then they can't get access till they're 18 🤷🏼‍♀️🤔

My parents are both planning to bypass my generation and give an inheritance to the grandkids, but obviously there's no guarantee that it won't all get eaten up on nursing homes and the like.

I got £250 from a post office account when I was about 12 which I spent on a bike and £2k when I turned 18, which was lovely and let me buy myself a car and go on holiday with mates after exams. That's all I was aiming for as an equivalent tbh but the rate the stocks are going they should have a nice little sum to go into adulthood with. Help with uni or a house deposit or hopefully something sensible like that.

Have been considering a SIPP for at least 5 years, just to start them off on the ladder, but I keep dithering thinking they're more likely to need it early!

1 child £500 per month (£250 from me, £250 from husband). When she is 18 she should have £250k to pay for uni and potentially a house.

Me too. Occasionally grandparents add £50 for birthdays but that’s it. They have a nice life. They’ll survive.

When I’m dead, they can have the house.

The calculation is correct, but it doesn't account for 58 years of inflation. Assuming inflation runs at 3%, the buying power of £230k in 58 years will be the equivalent of about £32k in today's money. Far less dramatic than the SIPP zealots are claiming.

How depressing!

Yes it does. I always talk about real returns (above inflation), e.g. 7.5% after inflation of, say currently, 4%.

For example, the SIPP I manage for a family member saw 24% actual growth last year, but I "report" that as 20% real growth to allow for the 4% inflation rate.

Here you can see the performance stats for a Golden Butterfly portfolio showing 6 to 7 % real growth per annum (after inflation) consistently over 30 year periods for multiple start years. It's why I used 7.5% in my initial post (rather than the flukey 20% this year)

portfoliocharts.com/portfolios/golden-butterfly-portfolio/#performance

Why are people saving for their children - unless they are really rolling in it - surely it is up to parents to enjoy their own money and children start to save as soon as they can? I had money boxes at 6 and 7, Premium Bonds at 8/9, a savings account at around 11 and all my Christmas and birthday money was saved for something I really wanted. When I started work I saved into a BS account myself and it grew into a real nest egg. Another example of kids being mollycoddled - get them learning how to save themselves instead of handing it all to them on a plate.

£50/ month into my LISA that I'll be able to offer DC at about 22, so a little help towards house, wedding, unpaid work experience/ intern, additional training etc.

Eye opening to see how many will be offering £50k+, houses, fully funded pensions.

Personally, as a parent and a grandparent, I have lived through a golden age of cheap housing and plentiful jobs. I'm not sure that our offspring will enjoy the same so it's a good opportunity to share some of my luck with them.

If they want to go to uni, maintenance loan is reduced based on parent income with the expectation parents will top it up. Maintenance loan often doesn't even cover rent so it's a lot of money to find from a part time job.

£0 sadly I’m not in the position to invest a penny, but I will receive a very good inheritance which they will benefit from . Obviously I don’t want my family to die to receive this but is a fact

We did this too. Saving from birth and now have 50k each in premium bonds.

My goodness! I cannot believe how much people have saved up for children. I don't know anyone who has 50k in their childrens account.

I am a massive saver and thought my lot were doing extreemly well with £15k each in premium bonds....

Obviously not!

I think you’ve done really well.
My children are nearly 18 now. They had no idea until a few months ago. Sensible enough to not want to spend it and carry on saving. Any winnings they get now goes into their current accounts.
They know not to tell anyone about it.

Pleased to see that pensions have come up! Best way to grow money for children that benefits from tax relief, long term compounding and not being accessible during the reckless years!

£2000 in a pension with only £50 a month. Not huge amounts compared to some, but a good kickstarter with the tax relief. If they take over the contribution when they're 18, the compound interest calculator predicts a pot of £800k at 68yrs old based on an AVG 7%return . Which isn't bad for the small amount of money.

They have £5k in a JISA also which we sporadically add to when we can. Otherwise we plan to help with driving and future costs from our own income and savings but on an if we can basis.

Because some people realise the benefits of compound interest. Not mollycoddling. Uni is more expensive than it ever was, the loans are ridiculous and there is little financial help. House prices Vs wages have run a mock. Personally, I am not loaded but I know I want to help at some point, so by starting now, the power of compound interest will really maximise what little I can give.

Because I like my children and want them to have a nice life.

@PistachioTiramisu @gloopyshoopy is right - it’s about compound interest. We set up a Junior stocks and shares ISA for our little one (ETF linked to S&P500) initially to put in all her cash presents from relatives and from us (we prefer to give cash when there are too many toys). Then recently we have started to put in £500 a month (because we are fortunate to do so) and hopefully the pot will deliver what it’s on track to deliver - about £250k by the time she is 18. She can then use that for education, car, towards a house - which will take the burden off us.
Given her young age (5), I personally believe it is pointless saving in cash as it’s eroded by inflation and you can get much higher returns investing in the stock market.
If you have a maxed your own ISA limit and have a sufficient emergency fund in place, the next best thing if you can afford to is to utilise your kids ISA limit for them, as you’re effectively gifting money to them while you’re still alive which will also protect them from IHT later too / or if you die suddenly.
This is not financial advice, just what I’m doing.

Well thanks to this thread I've just transferred the stuff from their kids savers into SIPPS, so that ball is well and truly rolling.

We don't tend to save an amount monthly really, as incomes and expenditures fluctuate so much, but they had a chunk invested into stocks at birth and now we've maxed a sipp for the year. Might not pay anything anywhere for a year or two....or ever again.... But it'll be better than nothing!