Children's savings in your name?

[ThreeRingCircus]

Hi all,

I have two DDs that are still very young (5 and 2.) They currently each have a bog-standard savings account with a high street bank which we put half of any money they get for Christmas and birthdays in. They will automatically get access to these accounts when they turn 17 which I don't have a problem with as it's their money that they have been gifted but will hopefully go towards a car or other 'bigger' purchase. It'll probably be about £2k each I would estimate.

Separately, DH are saving for them in our names notionally to help with house deposits. We currently have £5k saved between the two of them but again just in a standard joint savings account earning almost nothing and being eaten by inflation. This is money we don't plan on telling them about until we deem it a suitable time to help them out, so we want control over it. We're hoping to be able to gift them around £10k each when the time comes.

I thought about putting this money we're saving for them for the long term in a S&S ISA but I already have one that I use as part of my retirement planning. DH doesn't have a S&S ISA so I suppose we could open one and earmark it for children's savings but I'd really prefer it to be in both of our names and not just in his (not that I don't trust him, I absolutely do but was always brought up to maintain control over my own money.)

Is there anywhere else I could put these savings that DH and I have joint access to and control of? I'd be really interested to hear what other people do.

If it's in your name it's at risk if you go bankrupt or suddenly need social care. I'd advise keeping it out of your name.

I agree, I wouldn’t have it in yours or your DH’s name.

I suppose my reason for wanting it in our names rather than DDs is the risk of them having access to large sums of money that we've worked hard to save and them blowing it. Not guaranteed to happen of course but I was gifted £3,000 by my grandfather at age 18 and I'm afraid I completely wasted it going out with my friends . I suppose it was a useful lesson to learn and I'm happy for them to do the same with their own current accounts if it's a good lesson in money management but feel a bit sick at the thought of them blowing a huge sum. Or do people keep it in their DC's names and then move it elsewhere before they are granted access?

I save for my kids in my name. I’ll give it to them when they need it but I want the control.

What about Premium Bonds?

I don't see anything wrong with keeping it in your name. Essentially this money is earmarked for them but you never know what might happen and you may need it in the future. I would speak to a financial advisor about how to invest it with a decent return that balances with risk and see what they say.

I was very fortunate that my parents were able to gift me a sum of money like this for me to use for a deposit, my wedding, a car etc. I had no knowledge of it until the time came and it was gratefully received. That being said, if for some reason my parents had fallen on financial hardship and needed it then I would never have known, wouldn't have missed it, and tbh as an adult now I would definitely have wanted them to need it had something happened - like an injury that prevented them working or something.

My DS is only a toddler but we initially set up an ISA in his name. It’s got a few thousand in it already but I saw a few threads on here about teenage children getting access to big sums at 18 and wasting it with nothing the parents could do. So on a balance of risk I’ve stopped paying into that open and opened up another account just in my name. I don’t share with DH, I’ve read too many threads on here about previously lovely DH changing into a nightmare ex.

The eternal question!

We have 3% santander accounts for my two for gifted money (up to £2k) and then junior S&S ISAs but I only pay £25 a month each into those. I figure there will be enough in those two for car/driving lessons and then I will save for uni/house deposits in my name. DH doesn't get involved in household money other than trusting me to manage it, I wish there were standard accounts that were in trust until 21 or 25.

Is there any reason why this money earmarked for your children needs to be kept separate from your own? Can you put it all together (and benefit from the larger investment pot) in your ISAs, and have it divided up in a spreadsheet?

@MissSueFlay that's a good point and I think we're going to go with using the S&S ISA route. I suppose I've been avoiding putting it all together as I quite like having separate pots (I do the same with my banking app.....pots for holidays, Christmas etc) but appreciate that's just me being a control freak and you raise a good point about the bigger pot!