How much to put in children's ISA accounts or keep control over.

[Waitingforthetimetopass]

There is some money that we know will be coming from an inheritance. We will use a chunk to pay off our mortgage. The rest will be invested and that will be discussed with professionals.

The bit I am unsure and wanted to ask others experience and thoughts on is that we will put some in ISA'S in our children's names. Ideally I want to try and save over 100k each by the time they are 18. However, I am not sure if it's a good idea that they get access to the whole lot with no strings on their 18th birthday. Is it better to have some just as family savings but mentally tagged as uni expenses/ first house deposit for each child.

I personally wouldn't give anyone 100K at 18. Some would use wisely, some would do (as I have seen with my kids who friends all got them) piss it up the wall.
We never afforded to save any but my DS1 blew his from the government in a month. DS2 used half to go travelling (he also has a job) and put half in a LISA. It could go either way.
My friend from school blew £500k inheritance in 6 months aged 21 travelling in the US.

Thanks. I will look at this. Its really helpful hearing others experience.

Thanks. These cautionary tales are making me consider how to safeguard the situation. We will have to work hard and put away savings on top of the inheritance. I don't want that wasted by teenagers being teenagers.

I would put 10k or so in a jisa for things like travelling, or driving lessons and an old banger car. A nice sum for them to make a decision over treat activities when they are 18, but not the bulk of the money. I think there is a real risk if gaining a 6 figure sum at 18 that it puts them off striving for a decent job. It can seem a vast amount of money for them, but it's not Jane Austin time anymore, when 10k a year made you ultra wealthy. It could soon by chipped away with dipping in for an iphone, a holiday, a pair of trainers etc.

Most 18 year olds wouldn't want to immediately buy property and be tied down so young. Only hand over the house deposit when they are ready to buy and make sure it is ringfenced if they are not married and buying with someone else!

Have you considered what to do with the university amount if they don't go?

If they don't need uni money they get a better house deposit. I really appreciate everyone's opinions. It can be tricky to plan forwards so far.

We're saving a fair amount into jisa now childcare costs reduced - the issue about saving in own name is if you need to rely on benefits at any point due to job loss the savings would be taken into account and have to be run down before you could claim. I've never been on benefits nor intend to, but I'd prefer to have something in their names that no one can touch or include in any assessment of our assets (including for purposes of divorce). They have rooster cards / app and are learning you have to work for money / can get interest if save so hope they won't blow it!!

I don't think benefit claiming levels should come into this decision. You should only be directing spare income into your DC's savings when you are confident your own savings and pensions for emergencies and / or later life are sufficient.(Imo).

I am fortunately in a position where I am unlikely to need benefits. Both DH and I have decent wages, admittedly his are much higher, and my profession is one where I am very unlikely to be unemployed for long. If we had to we could live on my wages once the mortgage is paid off.

We will pay off our mortgage first and keep a significant sum as investments for ourselves.

I would tend to agree with this - we have a good household income and in mid 40s so things looking quite rosy - could pay off mortgage etc but you never know what is around the corner and whilst we have our own savings I very much see the kids savings as separate that should be protected irrespective of what happens to our finances - in today's job market you could easily lose your job or god forbid fall ill - so unless you can cover all bases and still ensure the kids get their money at 18 or 21 or whenever I think there is some rationale to ring fence it as their money.

It is definitely something that I am putting into my calculation. I am still reluctant to put the full amounts in DC's names. It seems a lot to ask them to be that responsible at 18.

I'd keep it in your name. You never know how children will turn out.

I think it's very hard to know how things will turn out. My grandparents had saved some money up for each of me and my brother. I got given mine in a lump sum on my 18th birthday because they knew it would go straight into an ISA and not be touched til I wanted a house deposit. My brother's was sent to my parents who released the amount that could be put into a help to buy ISA annually until it was gone, then helped him transfer it there immediately on arrival in his account. He didn't spend it once it was locked away but he could easily have frittered it at 18. Not because he would have done so deliberately but because if it had just landed in his current account he wouldn't have got around to moving it and then it would have just slowly been eaten up whenever he was short on funds at uni.

Yeah, my 2 siblings and I were given a much smaller amount by GP. I saved mine, DB spent his on his hobby, DS spent hers on a holiday and helping her waste of space boyfriend.

This is the concern.

I'm financially training my children (they are still young)

But you just dont know what the future holds.

My kids will have enough to do driving lessons, a car and / or a bit of travel.
I want my assets in my name - its only sensible.

It is early days but I am trying to teach DC about money and saving. Or the older one at least, younger one is way too young atm.

Not sure I dare say what I do now! Suffice to say both have pensions and ISAs since birth and I trust my children 8 & 10 will grow up to be sensible people.

I want to believe that mine will although they are significantly younger. My eldest is 3. I suppose I struggle to imagine her older.

Mine are 4 and 2
We max their JSIPPs and birthday Christmas and christening money etc goes in JISA.
Everything else is in our names.

Honestly no one in my peer set (which is solidly MC) is putting significant sums in ISAs for their kids. It's just not that sensible.

Jobs arent stable....you see huge amounts of people suddenly unemployable after redundancy in their 50s. if you have to virtually retire 10 yrs early thst has a big financial impact. I wouldnt fancy having 100k+ cash locked up and untouchable when I still had a £2k pm mortgage payment to make....