savings plans for children?

[kathsmj]

Does anyone know of a lucrative way of saving for a child's future? I am constantly being sent info on baby bonds and am tempted but unsure and wondered if there were any really good ones I could have for my baby. If anyone knows of any good accounts or tips on saving for kids, would love to know.

Might try last most recent (?) thread on same subject. Personally, I think those baby bonds are a complete rip off. Motley fool website (which is for private investors) has critique in simple language. The baby bonds are a tax shelter, but they also take an awful lot in charges. There are better tax shelters and better ways to save.

I'd second what zebra has said (though it's all on that other thread anyway) about the "baby bonds" being a bit of a rip off. They're essentially an endowment policy, and who buys one of those these days? You have to ask yourself if you'd invest in this product if it wasn't marketed as for children, and if the answer is no, then don't do it.

I'm another fan of the Motley Fool - they have an investing for children board which you might find it worth browsing through.

The most efficient way to save for a child's future may well be to put money into a stakeholder pension for them - but the catch is that they can't get at the money uintil they're 50, and who knows how pension legislation is going to change by then anyway?

We decided to go for a range of alternatives, which will allow access to the money earlier if necessary. Our solution for DS's savings has been a combination of a low cost index tracker fund with the dividends reinvested for regular contributions (and hopefully long term growth), a children's savings account (Smart2Save from the Nationwide) for one-off amounts/presents from other, and some premium bonds for Birthday/Christmas Presents.

Oh and very important - buy them a piggy bank and teach them as early as possible to get into the habit of putting their pennies into it. Teaching them the value of money and the benefits of saving are good investments for their future which cost nothing!!!

ISA's are safe tax-free way to save. I spoke to an IFA last week who told me that in the current economic climate ISA's are by far the safest way to save. Both you and your partner are allowed one ISA each. There is a maximum of £3000 you can put into it in any one financial year, but the interest is good.

What GillW said about teaching them financial responsibility is such a good point. Isn't unsecured consumer debt now over £5000 per person? How can so many people get themselves into such hock?? I fear a big, real recession is looming soon after the War starts and the economy goes truly pear-shaped.