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Original poster

How much do people pay into kids savings each month?

58 replies

LaydeeVF · 21/07/2016 08:51

So DH can't agree on this so I thought I would do some market research and see what other people are doing.
So how much does everyone debit into their kids savings accounts every month? Or do you even do this at all?
My thoughts are with the rising costs in housing and education then my DDs will need something pretty substantial.
Look forward to hearing your thoughts so DH and I can agree on something Smile

OP posts:
RumAppleGinger · 21/07/2016 20:29

Two DCs £50 each per month.

As for when they will get access to it I think it all depends on what they want to do. If they choose to go to uni it will be for that. If they don't then I'm not sure. I was still massively irresponsible at 18 and if my parents had handed me a huge amount of money at that age I would have pissed it up the wall.

Houseconfusion · 21/07/2016 20:34

DS gets his child benefit of £82.80 going straight into an ISA that I hold in my own name but that's for him. It's not in his name as I don't want him to have automatic control of it at 18. But it was opened for him after he was born.

He also gets £25 a month from his paternal grandparents into ISA.

His maternal grandparents give him lump sums of £500 for each birthday which also goes into ISA. Again not in his name. But for him, a seperate ISA.

This to continue for second baby when he or she comes.

buttertoffee · 21/07/2016 20:46

nothing. cannot afford. DC have no savings whatsoever (oldest is 8). feel awful about it. I would save for them if I cod afford it. it adds up over the years.

magicboy79 · 21/07/2016 20:52

We have two boys and they get £1500 a year put into their junior ISA, which works out £125 a month, some months more Han others but always have a target of 1500 for each year

Two4601 · 21/07/2016 21:43

I don't save anything for the children but they will be 15 and 18 when the mortgage is paid off so I will be in a position to help them as adults when they need it.

TaIkinPeace · 21/07/2016 22:19

Zilch.
Unless you are paying into the kids accounts to reduce the tax on yours
AND
you have absolutely no debt at all
you are daft

tax free savings went out
(a) when interest rates dropped to shit all
(b) when the first £2000 per year of interest became tax free

Priorities for children

  • hug them
  • give them time
  • not be in debt yourself
  • have some savings for when they get expensive habits
  • have not too much savings that you get clobbered on uni fees
  • save the big block for their first house, not the student loan

most people never reach the latter two lines
but the first ones are what matter

Original poster
LaydeeVF · 22/07/2016 07:22

Thanks for all the fantastic feedback on this guys, very appreciated.
Not sure if DH will be any closer to agreeing but there is definitely some discussion points Grin

OP posts:
Eastpoint · 22/07/2016 07:27

Thanks TalkinPeace for those sensible words. Our dcs have only what they've saved from birthday money or inherited (grandparents have mainly died). My neighbour's daughter spent the money she had access to at 18 before she was 19 and ended up in a clinic.

BendydickCuminsnatch · 22/07/2016 07:32

We've been really lax, tried to do £20 a month but not sure if that transfer is still set up. Going to do a proper set up for DS (1 year old). Don't know why I feel we should save for him, my parents didn't save for me and DH's didn't for him, but it feels like the right thing to do. Didn't realise it was something most people do!

redhat · 22/07/2016 07:32

Whilst we put money aside it is in our names. They won't just be getting large lump sums at 18. The money will be there for things like a house deposit.

lanbro · 22/07/2016 07:45

My dc don't have their own accounts but we save at least £500 a month between a couple of ISAs. We would rather clear our mortgage and have more money available day to day. We intend buying them first cars and helping with university, housing, travelling etc in the future, but with our savings, no allowing an 18 yo free rein with a large amount of money!

RebelandaStunner · 22/07/2016 07:55

We have money set aside for a house deposit for dc and some to help with driving lessons. They won't see it until they need it. I saw a friend aged 19 waste a £20k inheritance on rubbish and spent loads on her boyfriend who left when the money ran out. She could have bought half of an house then. If they want fun money,
who doesn't? they can earn it. We only have this because our pensions, savings, investments for us etc are sorted. Sorry but wouldn't scrimp for it - work ethic and all.

Ragwort · 22/07/2016 08:01

We put the child allowance into a pension plan for DS - that he can't access until he is 55 Grin. He has savings from birthday and Christmas gifts - a few thousand ££s and my parents are very generous and put £100 a month into a long term savings plan for him (and their other grandchildren). This is intended for university fees/deposit on first house or similar and can only be accessed by trustees so he will not be 'given' the money.

cherryminx · 22/07/2016 08:07

We started putting money in Kids ISAs/ CTF but realised that the money is stuck in those accounts and that only DC can access when 18 and the interest rates at that time were rubbish compared to other investments. 18 y/o are not necessarily going to spend a lump sum of money in any sensible way.

So we stopped doing this and just do what Talkin Peace said.

Warl · 22/07/2016 08:07

We put the maximum amount in DD's child ISA & have two separate savings accounts in my name that get paid into weekly, one for uni if she chooses to go & one for a first car. However I'm starting to have doubts about the ISA account.... Thinking back to myself at 18 I'm not sure I'm comfortable with her having access to a large sum at that age, I know for a fact I wouldn't of been responsible with it

cherryminx · 22/07/2016 08:12

My big problem with Child ISA is that you cannot take the money out. Most people have cash ISAs. So you are at the mercy of the banks paying whatever interest rate they like.

Also there is loads of bureacracy around administering them. Whenever I wanted to change anything I had to go to the bank in person with birth certificates etc. It took me three years of trying to get the admin person changed on DDs CTF from DHs to mine.

feelingmiffed · 22/07/2016 08:14

We don't put anything away, I keep meaning to start but never get round to it!

My parents pay into an ISA for both boys, think it's £50 each per month. The hope is that this will go towards university

Ds1 is a good saver, he's 12 and already has nearly £1000 in birthday money savings

Ds2 has money that burns holes in his pockets Grin, so I tend to try and sneak a little bit of birthday money away for the future. He'll thank me at some point hopefully!!

redhat · 22/07/2016 08:40

talkinpeace how much in savings is so much that you get stung on university fees?

redhat · 22/07/2016 08:41

talkinpeace how much in savings is so much that you get stung on university fees?

AnneElliott · 22/07/2016 08:47

We split the child benefit between DS child trust fund and his pension. He also has a savings account for birthday money. He's done quite well as he's got about £7k between the savings accounts and he's 10.

ohidoliketobe · 22/07/2016 08:57

£25 per month via share save scheme with work (they match £ for £ so £50). We cash it in each year and put it into an ISA. DS also has a 123 Mini ISA with Santander into which go birthday / Christmas / Easter cash gifts. Will set up the same for DC2 when born, keeping the share save running for 18 years per child (finances/ situation permitting).
DC will have no knowledge of the ISA from shares (obviously will know about the birthday money one as they get older), plan to keep it until they're at a certain point in their life when they will benefit from a cash boost - help towards first house etc. I don't want them to rely on it.

elQuintoConyo · 22/07/2016 11:37

We don't save, we just don't spend.

We don't have a lot left over at the end of the month but we do contribute to pensions.

As a pp noted, neither my nor DH's parents saved for us, they just bought/spent as and when. DH is one of 6 and Pils aren't high-earners, it would have been impossible to save for all of them.

My parents helped me at uni, i got a job (or 10, over the years!) to pay for myself, i expect it to be the same with our dc.

We have a fairly nice life with beach, picnics, exploring the woods, cycling etc to create nice memories, but live in Aldi/Ludl and buy well but frugally. Hopefully these ideals will rub off on dc.

Sorry, last para sounds awfully smug, but i refuse to feel guilty for not having savings.

Newmamatobe · 22/07/2016 12:02

Child benefit plus I fill a junior ISA with £4K app each year...

29redshoes · 22/07/2016 12:19

Are most people planning to give their children access at 18 then?

We save for DD but its to help with big expenses in her future like university, wedding, house deposit etc.

I didn't think it was common to give DC access to their savings at 18 ( god knows what I'd have done with the money at that age!) But some of the previous comments have confused me.

Flossiesmummy · 22/07/2016 12:22

£30 each kid plus any large amounts they're gifted for birthdays, Christmas etc.