How much are you saving each month for kids?

[Realdeal1]

My children are 7 and 8 and I havent had a chance to set up any sort of savings pot (though have pots myself). I can afford to put down decent lump sums into a junior ISA but I'm not sure how much, plus what monthly payment. Is there any way to work out how much it may be worth at the end of the term?

Currently thinking 5k lump sum each, then 100 a month for both?

Mine are a similar age. £50 each into a bank account in their name (kids one). And £25 each into a Junior ISA. So £150 a month total. A simple spreadsheet based only on contributions in will tell you what that looks like when they're around 18
Mine should have around £12k each when they're 18 and will be told that they can use the money for car/driving lessons or travel or what they want but the bank of mum and dad won't fund driving lessons or travel if they spend it differently.

Ours have £21k at 21 (£1000 for each year of their lives) but we are high earners.

they money stays in our name so they can’t blow it at 18 and I just sweep whatever is needed in each birthday to top it up if needed (the interest takes care of some of it)

What is your savings goal? Are you keeping it as cash? Stocks and shares would be better if you are in it for the long term. I saved very little as cash for my dc and put it into shares.

There's little point in replies saying how much other people save as it goes on how much income you have.

There are savings calculators online where you can put in interest rates and monthly amount and it will work it out for you.

zero. Although Grandparents give chunks now and then. We’re working on paying off the mortgage before they’re 18 so we can help out with uni.

I saved very little in cash and put most into shares.

Tbh I have a house, but my big outlays are school fees. I have large amounts of savings in my name but low interest. I'd like to sell some shares and put that money into a separate fund for the children ideally. This could be approximately 15K each. Then top up each month. I've always been low risk but am considering stocks and shares.

For years it was just £20 a month each as that was all I could afford. It’s now £40 each. However we’ve also put all their birthday, Christmas and Easter money (family that don’t live local send money rather than eggs at Easter) in their savings accounts and they have between 4-6k each at age 9 and 12. The accounts are in their name but I manage them and they will get the money when they are 18. It will be under strict instruction that it is not for clothes and nights out but along the lines of driving lessons, a first car, a gap year etc. Meaningful stuff.

I also have my own savings which I imagine will have to be funnelled towards helping supporting them in 18-21 semi independent/uni years

We do £200 a month in an account in our name. One set of grandparents top that up at birthdays and Christmas (too young at the moment for cash gifts they have no concept of money). The other set of grandparents put a little bit into a saving bond account in their name so they will have a bit of cash when then turn 16 (it will be about £5k by then) that they can use on driving lessons and if they blow it it’s not a huge amount but it will teach them a lesson!

I'll make you feel better - I save £10 per month for my child. It's all I can afford.

£50 a month in to a stocks and shares ISA. Goal is to keep the amount above age. Currently £10k and DD is 8. She doesn't get birthday money from anyone so this is it. She gets pocket money through my banking app, half of which is put in a 'save' pot for her to be able to spend on bigger stuff in future.

What if they don't go to uni? Will they get the cash?

£5 a month here. 😂

I saved a little each month from when mine were born -£40ish maybe a bit more. Both had around £8kwhen they were 18, paid for driving lessons and their first car. Both decided not to go to uni and did apprenticeships.
I got £3k when I was 18 - 35yrs ago...... and buggered off around the world for a few years. Money well spent!

£10 a month for each child. I’ve done this since birth as all I could afford but was determined to put something away. Also squirrelled money away from birthday money from relatives but now they are older they want to spend it!
Looking to increase as they are older and I have increased my hours.

If you think your children are likely to go to uni & will only qualify for the minimum loan, then from reading multiple threads over the years, paying off your mortgage by the time the eldest is 18 is the thing to aim for.

So it might be better to overpay your mortgage rather than put money in a savings account. Especially as they are close in age so you could potentially be supporting two at the same time - which could be £1000 per month at current costs.

Save as much as you can! Our goals are to fund all living costs at university (so DC will only take out student loans to cover tuition), plus weddings. And maybe help toward a house deposit? We save £250/month for the eldest and £200/month for the youngest (because they’re starting uni two years apart, our eldest needs an extra £50/month boost in order to have enough once they start uni).

Nothing! We're paying off the mortgage and trying to ensure they have a fun and interesting childhood.
We'll be in a position to help with uni and driving lessons.

£25 a month into an investment SIPP so that when DD is retired and I'm probably not around I'll still be taking care of her a little bit.

I've seen plenty of friends at uni and similar completely waste the hard earned money their parents had saved for them and although she's level headed wouldn't want her to have access to large amounts of money when young.

We put £5k into shares for my son when he was born, and still need to do the same for my daughter who is almost 3 but this CoL crises and the mortgage hikes have hit hard. Otherwise not currently saving anything monthly for them, their birthday money just goes into their money boxes. Should probably be making smarter decisions.

I got access to my post office fund at 13. £250 which i spend on a mountain bike I had till I was an adult, and even then I part exchanged it for the new one! Otherwise I didn't get anything until my grandfather died and gave me some inheritance well into my adulthood. My OH hasn't had any inheritance or lump sums at all. We both had our rent paid for at uni which was a huge help, but otherwise got student loans and worked. We've done okay. I know my parents are planning to do the same as my grandparents (skip us and give to the grandchildren) so they possibly have something coming at some point depending on how it works out. I feel that if we can do it with all the financial crises and recessions etc then anything we can give the smalls will be better than nothing.

this is a really good point. Loads of my friends got lump sums which they spent on travelling and nights out. It was great for them and we didn't think much of it at the time, but now living it from the other side where every penny feels pretty crucial it doesn't thrill me to think we might be going without life experiences now so they can buy beer later!

Not a given, some people were really sensible. Invested wisely, got on the property ladder etc.

Nothing - but the mortgage is getting paid and it will be theirs one day. Hopefully by the time they are old enough to think about buying their own houses, this one will be paid off and we will have enough to help them with a deposit.

I have no intention of giving a lump sum at 18/21/25. I was given a lump sum at each of these ages (compensation that had been held in trust, an inheritance, and a relative’s generous cash gift respectively). Blew the first on a holiday to Disney world. Blew the second on luxury living at university (and tuition fees for a year), and only the last was used for a house deposit - unfortunately with my ex and I failed to protect it.

I will make sure uni is paid for, opportunities are given, but I won’t hand the money over directly. Everyone I knew who came into cash at similar ages blew it too.

We're medium level earners. We save £100 a month and will do the same for our second.

not saving anything in their names and I honestly think any parent that does do is asking for trouble. The mortgage will be paid off by the time they are 17 and 14 at which point we’ll help with the important things (education and housing) so long as they are also helping themselves.

I think it depends on how you give the children the money—I don’t intend to give them lump sums—my intention during the uni years is to drip feed it monthly for bills and living costs.

As older parents with decent income we paid our mortgage off before we had our DS.

We then invested significant sums to cover school fees and ultimately to ensure our DS won’t ever need to get a mortgage.

As an only child with older parents he’ll inherit from us relatively early in life so will never have any financial concerns.