Kids' savings

[LaPufalina]

I'm wondering what other parents do with money they save for/are given for their children.

I have a 4yo and a 2yo and they both have a 3% interest current account with birthday and Christmas money accumulated, then I save £25 a month each for them into a S&S ISA. They also have some inheritance from a great-grandparent in their respective ISAs.

I was looking to increase the standing order to the S&S ISA once our nursery bills drop (when youngest gets free hours), but I'm concerned about them having access to quite a lot of money at 18. I'm saving for first cars/uni/house deposits so it would be about £250 a month each, I've run the projections to meet the requirements.

I like that it'd be ringfenced in their names but that might also be a downside if they turn out to be a bit reckless with their spending approaches (full disclosure, I got in loads of debt in my 20s, I hope it's not an inherited trait!).

I'd welcome thoughts, thanks in advance.

Hi, this was exactly mine and dh worry so we have decided to keep the money in an account in our own name and when they come to getting a car/house etc. we will then hand over the money for that specific reason. It will be a surprise as we don't plan on telling them we have money put aside for them

I’ve decided to save in an account in DS name that we can access if we need to as he grows up - hobbies, school trips etc. If he’s shaping up to be a bit flakey then I will transfer whats left back to my name before it reverts to him.
We will open a S/S ISA and deposit life insurance money from DS2 who was stillborn as I figure even if he “wastes” it having a bloody good time, DS2 would still be happy with that. It’s different somehow.

I save a tiny amount in a S&S ISA for my DTs in their name. Assuming no returns, it’ll be a couple of grand by the time they turn 18, which I’m happy with the idea of them blowing it on fun. The bulk of their savings I have tied up in an ISA in my name with Scottish Friendly which guarantees to at least pay out what I’ve put in on every 5 year anniversary. Hopefully it will continue to be in profit, but I like knowing I won’t at least lose anything on it.

I don’t want the bulk of their savings to be in their name in case they’re irresponsible. I also don’t like the idea of an emergency/disaster cropping up and the kids being rich In their own name, whilst I’m scrabbling around down the back of the sofa trying to find change to feed them. I’ve not decided what age I’ll give them the money, but have plenty of time to decide given they’re only 3!

Thanks all, I'll keep the £25 as fun money to blow, I like that idea. Sounds like I'm on the right lines!

We do similar as above. Our DC have savings accounts in their own names where birthday/Christmas money gets saved. It will probably equate to £2-3k each when they're 18 but it's money they have been gifted so I'm ok with them having it.... and resigned to them blowing it as I did at 18 when I was given a similar amount!

Separately we save £50 a month per child into an account in our own names. This is designed to help them with housing costs when they're older and they don't know it exists so hopefully it will be a nice surprise for them one day.

@Youseethethingis so sorry for your loss x

The worry with savings in your own name is, if you ever fall on hard times you will be expected to burn through those savings before state support whereas in a child’s trust fund or isa it is not your capital.
I put some in j isa, some is j pension & gift money goes into standard saver

@cracracatlady it's a tricky balance isn't it with pros and cons each way as to whether you save in their names or your own. Personally I didn't feel comfortable with a large amount of money being transferred to them when they're 18 which is why we keep the bulk in our own name.....so when we can transfer it to them for a house deposit or buy them a car or something. Money they have been gifted by friends and family however I view as rightfully theirs and that does get saved in their own accounts.

Yes it’s definitely tricky, I put in junior pension, so obviously for much later in life and still sway on that decision, part of me thinks they’ll need the money long before pension age, swings and roundabouts I suppose

We have saved for my 16 yr old since birth in a child Trust fund ( similar now is Junior ISA) Just put a bit away every month, along with contribution from grandmother. Never more than around £70 a month. Stopped paying in when son was 14 as realised he is unlikely to be very good with money. Now kind of regret that he will have access to around £13k at one go as that is likely to be the only biggish lump sum we can help him with, and is unlikely to spend it wisely I fear.

So definitely spread the investments, a bit to access when he is 18 sounds good with the rest squirrelled away under your control to decide when is the best time to pass it onto them.