Best way to save for children's future

[Remmy123]

Hi there

My eldest child is 13 and only has a few thousand as savings which worries me greatly!!

I also have two younger children and after years or money struggles we are back on our feet.

Now I am looking to save around £50 per month for each child.

I am confused by cash Isa / stocks and shares Isa/ pension

I've done a search and nutmeg and vanguard seem popular?

I know nothing about stocks and shares but willing to learn.

Advice welcome to start me off - thanks in advance!

Stock & Shares for anything that is 5 years or more before it will be accessed.

Junior ISA is a wrapper that is the child's, they get control at age 16 and access at age 18.

ISA is a wrapper that is yours, you have control and can access it at any time.

So think about if you want money in your children's names, or in your name where it is more accessible.

Junior ISA can be contributed to by grandparents, so that can be handy.

Fidelity, Vanguard... just two of many JISA providers which are quite low cost.

You don't need to pick individual stocks & shares. Keep things really simple by buying as much of the whole market as possible. That is done by using a multi-asset fund, such as Vanguard Lifestratagey, MSCI World, FTSE Global All Cap, Blackrock MyMap.

Listen to these two episodes of the Meaningful Money podcast which are aimed at beginner investors:
meaningfulmoney.tv/UG4
meaningfulmoney.tv/UG5

Also see this video:

NannyNics advice is spot on as always.

A recent thread has mentioned starting a pension for children, Contributions can be as little as £30 per month.
One of the benefits is the boost to savings with tax relief.
Also consider lack of access to the money until
a sensible age.
Along with
Teaching children the power of compound interest.
Fidelity has been mentioned as provider, due to zero fees for children, I hope to start pensions for my grandchildren but only parents can set pensions up then grandparents may contribute.

@Remmy123 I think your 13 year old might already have a child trust fund? I have a feeling that can be converted into a stocks and shares isa. Depends when your 13 year old was born as i think CTFs were discontinued.

Thanks all this is so helpful.

Yes 13 year old does have a trust fund.

What about if I had just one stocks and shares ISA in my name for all the kids then split it later down the line or is it silly to lump together like that?

Grandparents do not help financially so just us.

Thanks all!

Unless you’re rich and will max out your own ISA allowance then just use your ISA for your kids. That way you keep control and if you ever had a big family emergency then you could use it.

@Remmy123
I would convert the CTF to a junior stocks and shares Isa for your eldest
And
Set up an Isa in your own name where you can contribute up to £20k per year, (tax free on the way in and tax free on the way out) share this between your other children.

Thanks so much!

No we are defo not rich 😬 far from but feel so bad they have little savings!

Ok so seems like best thing is put existing trust account into stocks and shares account and then have one in my name for all kids combned.

@Remmy123

Thanks all this is so helpful.

Yes 13 year old does have a trust fund.

What about if I had just one stocks and shares ISA in my name for all the kids then split it later down the line or is it silly to lump together like that?

Grandparents do not help financially so just us.

Thanks all!

Fine in my view. Keeps your options open, keeps the money in your name so you can use it whenever you like and if things go downhill you can use it to keep a roof over your children's heads.

I would try and max your own S/S ISA first and any pension contributions

Thanks all so much!!