Best way to save for children’s future?

[Farmwifefarmlife]

I have 3 DC. They get around £300 a year from family for birthdays / Christmas I know it isn’t much I could top it up to £500 a year. Is it best to keep it in a savings account? I’ve been looking into stocks & shares ISA’s. What do other people do? They won’t have any inheritance from us maybe a small about from 1 GP. So I’d like them to have something to hopefully help them in the future. Any help or advice?

We save into a stocks and shares ISA in a global fund. They have done well so far (even with the recent blip)

Save in your own name. If you save in theirs they’ll have full control over it the day they turn 18 and may not make the most useful decisions.

Yes - either save in your own name - or save in their name (usually you get better interest rates), but in an account which will let you withdraw it before they turn 18 so that then you can put it in your name.

They save their own birthday and Christmas monies in their own name- either cash isa of stocks and shares. Then you try and save a few hundred a month in a regular savings account . First direct offers 7% atm for a max of £300 a month . When the term needs put the £3600 and the interest into your own isa in your name.
That’s what we did. Encouraged our children to save birthday and Christmas money and we continued to save in our own names. Eldest child is at university now and incredibly responsible with money. Youngest would have spent his last £5 on something stupid but we are slowly educating him on the benefits of long term savings and compound interest. He’s getting better and now any money he earns working for his dad at the weekends goes straight into his isa.

Have a look on the MSE savings calculator. If you start with £900 and add £30 a month with an interest rate of 4.2( possible to get higher for children’s accounts but mine is currently 4.2 with Moneybox ) you can reach almost £10k in 15 years . I’ll try to add screenshots

www.moneysavingexpert.com/savings/savings-calculator/

Thank you everyone this is super helpful, I was worried about them having access at 18 but I was hoping to be able to steer them into re saving it until they were older and could use it for a house deposit ect. I will look into everyone’s recommendations.

Also teach them about wants and needs and delayed gratification. It worked brilliantly with my eldest when she wanted a £1000 desktop but didn’t want to spend from her own savings. She makes do with her laptop but I’ve told her she’s welcome to buy the desktop anytime.
The youngest has been more of a challenge but is getting there as he wants to save for a car( or a tractor depending on the day 😂)

If you’re on a farm get them interested in helping out . They won’t have time to spend any money they do have 😆

Thank you I have looked at hargreaves sticks and shares ISAs I’m keen on that idea but DH is worried they will loose money not makes money. DC are 7, 2 and 6 months so have a lot of time!

Don’t assume you will be able to steer them. A friend of mine was very sensible generally but spent the 8k his parents had saved for him in under a week aged 18 (and not on anything lasting like a car).

Thank you, this is what I am hoping. Only thing with locking away until they are 18 is they can’t access it so it’s useful to see about children buying things as they get older. My 2year old would definitely buy a tractor any day so I feel you on that one!

Check out the rebel donegans. They have a free course regarding long term investing starting in June.
Very informative.