Investing money for a child

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DS has a trust fund (low risk stocks & share) which is now worth over 7K despite me not paying in to it for years

By the time DD came along (she's 9) these had stopped.

She has a bank account with savings but I'd like to invest around £60 pcm for her.

Any suggestions?

i just use s&s isas

I use Aberdeen Standard Investment for Children, mainly because she can't get her hands on it at 18 (which was a worry with an ISA). We get total control.

Thanks - I'll take a look at Aberdeen.

Do you mean the CTF initially funded by the government?

A JISA is basically the same thing.

@Chasingsquirrels - my son has the child trust fund.

It's DD who I'd like to invest for as she just has a bank account at the moment.

My 12 year old child has a child trust fund (started with government vouchers and added to by us). My 10 year old didn't get the vouchers but we opened a Junior ISA for them when they were born (which was the account offered when the CTF were stopped). Both accounts operate in the same way really and are run by the same company, just one is labelled 'CTF', the other 'JISA'.

Yes I understood that, I was saying that JISAs basically replaced CTFs. So if you wanted something similar then a JISA does the job.

Junior ISA. This type of tax wrapper enables parents, grandparents and others to contribute and your child gets access to the money at age 18. They can be encouraged to then keep investing that money, such as by moving some of it to an adult ISA, and some to a Lifetime ISA for saving towards a first home deposit.

Fidelity is not charging a platform fee for a Junior ISA. Vanguard has a low 0.15% annual fee. There are other providers. Money To The Masses has a comparison table: moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

Within the Junior ISA you pick one or maybe a couple of funds. You buy units in the fund and the fund buys many thousands of shares in companies spread around the globe. Choose a fund that is as global as possible, as low cost as possible (funds make an ongoing charge, such as 0.22%).

How to choose a multi asset fund - podcast: meaningfulmoney.tv/BW7

If you do not want your child to access the money at age 18, then you can use your own ISA allowance to invest.

Choose a fund in the same way you would with a Junior ISA. When the time comes to give the money to your child, you can gift them the money... known as a Potentially Exempt Transfer for inheritance tax purposes. As long as you live for a further 7 years, then there is no tax on that gift.

You may also want to consider moving your ds's CTF to a JISA so that it retains the ISA wrapper when he turns 18.

Child’s pension? Depends on when you want them to have the money of course.

I'd look at trusts rather than ISAs, whilst many 18 year olds have their heads screwed on, many will blow their savings on cars, holidays and partying.

Their was a mum on here recently who's 17 yo was using drugs and the last thing she wanted was for him to blow his savings, really her money she'd saved for him, on drugs.

Thanks all - I think I'm leaning towards Junior ISA's.

I like the idea of being able to transfer to an adult ISA & would prefer them not to access it at 18.

We are in Scotland so university fees are not such an issue.

I already have a BTL which will hopefully help in some way too.

Fundsmith child's ISA. We switched to these and they've performed very well.

With any junior ISA the child can get it at 18

You open up a stocks and shares ISA then choose what you want to invest it in.
Out of interest how much was the initial investment. What funds is it in.

I’ve just opened a junior isa with tesco (Martin Lewis said they are one of the best intrest rates too )
im wanting to have around 15k for her when she’s 18 for lessons and a car lol 15 years to go beeep beeep x