Making S&S JISAs fair between 2 DC

[Pomegranatemum]

Appreciate this is a nice problem to have…

I opened a stocks and shares ISA for DC1 when she was a baby. As well as paying a relatively small amount in on a monthly basis, we also paid in cash that people gave us as ‘new baby’ gifts. Because the markets have done so well in the last couple of years, there’s already a nice amount in the JISA.

We now have DC2, so I’m paying the same amount in monthly to both. But because we haven’t received as many cash gifts second time around, and depending on what the stock market does, DC2 will definitely end up with less at age 18.

How do other people keep stocks and shares JISAs fair between different aged DC? It’s always going to be difficult due to the stock markets isn’t it?

My thinking is to try to top up DC2’s JISA soon if we can (though I don’t know how much by). Due to compounding I can foresee the gap only getting wider, so it’s cheaper for us to do it now than try to bridge the gap at 18 (and obviously I’ve no idea what our financial situation will be then)?

TIA

I would agree with your plan. Top it up a bit now if you can to make up for the lack of gifts. You are right in that the gap will get wider.

I would top up dc 2s with the same contributions dc1 had ASAP. Other than that let the markets do their thing. It's important the kids learn about investing.

This does make sense….but it means somehow working out how much those extra contributions were. And should I uprate them to account for inflation and/or markets?
I hear what you say about letting markets do their thing, and there is financial education to be done there. But at the moment it feels inevitable that DC2 will be worse off due to the unusually high returns in the past couple of years, which DC1 has benefited from, and that makes me feel bad for DC2.

Things will always be unequal between kids born at different times.

It's just how it is. "Fair" doesn't mean getting the exact same as each other. You'll never make things exactly fair so there's no point trying.

As you say you got less cash gifts for second child, fair enough to top up the ISA yourself to try and make up for that.

But other than that, I wouldn't bother trying to equalise things.

There might be a dip in the markets when your eldest withdraws her cash. There might be a boom when your youngest encashes. Remember the time value of money, so for example £10k when your eldest turns 18 does not have the same value as £10k when youngest turns 18.

Nah just do the contributions and be done with it. Make a note of how much the first one gets at 18 and then when dd2's comes good you can even it up

I think it’s impossible for it to be exactly equal.

I’d top it up so it’s roughly similar, but don’t forget DC2 ISA will have those extra years to grow after DC1 turns 18.