Should I balance my children's savings now or wait until they are 16?

[Enigma85]

I have two young children born 18 months apart. The first born was given more when she was born than the second, and a very generous grandparent pays a small amount each month into their account so the first born obviously has more currently. Should I even the savings out now to be fair to child 2 or is that not fair to child 1? Should I wait until they're 16 when they have control of the account and ensure that at that age they have equal amounts? Been really playing on my mind what the fairest thing to do is.

I’d wait depending on the gap. Mine have premium bonds and both win regularly at different rates and I square them up each year - guaranteed the next month the other streaks ahead!

The value should be near equal for the age you give it to them.

@Enigma85 If I understand your DC1 was gifted £500 in their first year which you invested but DC2 was gifted £300. Compound interest means gifting the £200 difference now will be more cost effective than waiting until 18.

I would level up the discrepancy on what they were paid at birth now rather than wait. With the additional interest the first born will be getting for 16 years, that gap is going to be far wider when second born reaches 16 than if you’d evened it up now.

I have two that are 5 years apart. My eldest more at birth but we have been able to set up regular payments earlier. By the time my youngest is 5 he will have more than my eldest did at 5.
We will see how things go and level things up as things go. Currently the accounts are in our names but the money is earmarked for each of them so it's not like they will get access to the money at 18. It's more money that we have set aside to be used in their benefit in which case if the need arises we can top it up to the necessary amount.