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Original poster

Child Benefit - how do you spend it?

94 replies

debster · 19/04/2004 10:52

I've been wondering how people spend their child benefit. Do you spend it just on your children, save it or spend it any which way? Our child benefit is paid into a separate account but isn't actually spent on the children exclusively. They do have their own savings accounts but this is for birthday/Xmas money. The child benefit usually goes towards our household expenses.

Whilst I appreciate the extra money we get I do also feel uncomfortable about whether we should receive it all. I think child benefit should be means tested especially after seeing a programme a few years ago which featured a middle class woman who saved her child benefit to buy a new piece of art every year. I would rather those who really need it get more than everyone getting the same.

What do others think/do?

OP posts:
Soapbox · 19/04/2004 10:57

Ours goes straight into the childrens accounts and has done since they were born. I put birthday money etc in a different account for them as I am not going to tell them about the family allowance accounts until they are 18! I think it will be a bonus to them in terms of university/ a first car / deposit on house etc.

Like you we don't really need the money and do feel a bit guilty about getting it. However, I also make some fairly hefty charitable contributions each month to salve my conscience!

bossykate · 19/04/2004 10:57

i top it up a bit and save it into an equity isa. it is not for art though - it's for ds's university education. however, it is in my name.

as to whether it should be means tested. hmmm, not sure that the relatively affluent getting less would mean others getting more. also, the limits for means tested benefits always seem risibly low to me. haven't given this issue much thought thought though tbh.

gloworm · 19/04/2004 10:57

in ireland we get child benefit at start of every month (is it same in u.k.?)
We buy a month supply of nappies, wipes, formula. any left over goes towards less frequent purchases such as next size car seat, shoes, clothes, etc

and every now and then we might buy the odd curry and bottle of wine

goosey · 19/04/2004 10:59

It pays the bills I'd be in deep poo if I didn't have it.

wobblyknicks · 19/04/2004 11:01

gloworm - same as you, mine pays for nappies, wipes, food etc but I don't think there's any left over after that!!! It just goes into my account and gets swallowed up by baby bills!

mummysurfer · 19/04/2004 11:03

it goes into a seperate account. it buys shoes, clothes, presents for parties, but only for the children.

Twinkie · 19/04/2004 11:05

Think means testing child benefit would be another step down the ladder in terms of married middle/working class people actually not being able to afford to have children!!

coppertop · 19/04/2004 11:12

Ours goes on things for the boys -nappies, wipes, food, clothes, materials for ds1's speech therapy, and anything we need to help with his autism. This may change if we are awarded Disability Living Allowance.

Nutcracker · 19/04/2004 11:15

Mine helps pay the bills too. I'd be in a right mess without it. Come september i start to use it to buy the kids birthday and xmas pressies.

cuppy · 19/04/2004 11:16

I had planned to put ours in a seperate account forr dd when she was born 9 wks ago . However - we've had 2 lots so far and Ive spent both without even realising. Not a good start. ( that also happened with our tax credits oops)

prufrock · 19/04/2004 11:25

Straight into an equity ISA as well, to be given to dd at 18 to help fund uni/house purchase or any other sensible thing she wants. I'm also not sure I should be getting it, although as bk says I don't think that taking it from me would mean it was given to the more needy.
BK - what are you going to do about the second child? Top up the monthly contributions yourself so each is investing the same, invest different amounts or split the total?

Beetroot · 19/04/2004 11:28

This reply has been deleted

Message withdrawn

Flip · 19/04/2004 11:30

The child benefit and tax credit award both go into funds for my two boys. They each have an ISA which received £50 a month, a pension which get's £20 a month and their own bank accounts which get's £30 a month. So all in all we pay out for them £200 a month which is more than we receive.

Helsbels · 19/04/2004 11:32

Mine goes stright into my account and is just 'spent'. I am not sure whther or not it should be means tested. The problem is that everything that is means tested (WFTC etc) seems to cut off at about 30k which is when the higher rate tax cuts in so although some people are paid more, they are taxed a lot more which means their take home is about the same as people who are on just under 30k. I appreciate my family allowance and don't feel guilty about receiving it at all

Nutcracker · 19/04/2004 11:33

I wish i could save mine for my kids

StripyMouse · 19/04/2004 11:37

I would love it to go into separate children?s accounts and have savingsbuilding up for them but the truth is that it goes to pay the bills. If they get brithday money etc. I use to to buy them nice things that they need - clothes, books etc. as it is more use to them right now than a savings account. We intend to change the matter as soon as we are a bit more financially sound. I feel bad about our situation. I don?t think it should be means tested but do wish that we didn?t "need" it like others and could use it as a savings system. As soon as mine are eligible for nursery vouchers we might have a bit more money and set up accounts then.

CountessDracula · 19/04/2004 11:38

I meant to put it into an ISA but haven't got around to it, at the moment it just disappears into the bottomless pit that is our joint account! This has prompted me to do something about it though

Flip · 19/04/2004 11:41

Nationwide's Smart to save accounts are very good for anyone looking for a children's account. The interest rates are one of the best and you can put in as little or as much as you like.

aloha · 19/04/2004 11:48

I save mine in a seperate account for my ds. We aren't rich by any means but because we are older I'm extra concerned about what we'll be earning by the time ds goes to university (if he does) and the money could be very valuable to him then.
Don't think it should be means tested, as I have no faith that it would be used well by the gvmt.

Original poster
debster · 19/04/2004 12:00

Wow - excellent response - although I am now feeling guilty as we don't put the money aside for the kids. Although we don't necessarily need the money we usually use it but not to buy things especially for the kids. However, as my SAH dp has rather inconveniently got himself a f/t job it might be an idea to start using it towards childcare. Worked out that to cover f/t nursery for 18m dd and after school and holiday care for 5y ds we will be spending out approx. £1000/month over the year so our £25/wk won't be going that far.

The means tested issue is always contentious and I fully appreciate the argument that those who really need it would not necessarily get more. It just feels as though at the momment it's something nice to have but not essential IYSWIM.

OP posts:
nikcola · 19/04/2004 12:01

i wish i could save mine for dd too nuctcracker
mine goes into my bank then gets taken out again by the bloody tv licence, contents insurence and phone + internet bill

Nutcracker · 19/04/2004 12:03

Well i really NEED it but at the same time i wouldn't begrudge it to people who didn't really need it either.

GeorginaA · 19/04/2004 12:04

Our child benefit and tax credits go straight towards paying ds' nursery fees & activities. I wish we were able to save it in an account for him, but we can't (not unless I go back to work, and I far prefer being at home with him).

If it were means tested then probably we wouldn't qualify, but it would mean that either ds wouldn't be able to do as much in the week or I would have to go back to work. Which would sort of be fair enough but would mean a huge reduction in quality of life for us

CountessDracula · 19/04/2004 12:04

thanks flip will take a look

slug · 19/04/2004 12:18

Goes into an account which is then used for financial rough areas, like the month that the council tax, water rates, car tax and electricity are all due.