Worried about transferring saving to child

[Chelyanne]

We started 2 savings accounts for each of our children after birth. Ones trust fund type and one instant access, of course each will be transferred to our children when they turn 18.
My problem here is our eldest is 15 now. She likes us to give her cash in her current account for her birthdays which is fine we want her to learn how to manage her money. So I've seen her bank statement and pretty shocked at how she has frittered all her money away within weeks of her birthday (a lot of Amazon purchases). I really thought we'd drilled it in to her to spend wisely but it looks like it's gone in one ear and out the other. We're pretty good savers ourselves but we did start out thinking debt was okay and it took us years to get out of that hole. I don't want our kids to repeat those mistakes.

Any tips on curbing this impulsive type of spending?
How to encourage them to save for themselves?

Amazon even

No way will my dds be getting access to large lump sums at 18. All the money is in our names and they will get it when they can be trusted to be sensible. Can you imagine how upsetting it would be to get to an age where you need a house deposit knowing that you had it but frittered it away as a teenager? And it’s a rare 18 year old who really understands money IMO.

If my DC are ready to buy a house at 18 then that will be fantastic and of course we will give them access to their savings.

But they might equally he head-over-heels in love with a complete arsehole who convinces them to 'invest' their savings in their latest business scheme. Or drugs ffs.

The point is, when we start saving for our newborns we have absolutely no idea whether they will be responsible enough to handle a significant sum of money at 16, 18, 21, 25 or even later. So I think it is really important for parents to stay in control.

Does she know about the savings account? If she doesn’t I just wouldn’t tell her about it! My DS is only 4 so a long way to go for us yet, he has a junior ISA and a junior savings account both in his name, but my plan is to simply not tell him they exist! When he turns 18 I believe the accounts simply become adult ones and I’ll tell him and give him the money when he’s ready. I was sensible with money even at 18 but my DH openly admits he was an absolute idiot and frittered away most of a £20k inheritance. We don’t know yet which one DS will be!

@ItMustBeBedtimeSurely @cheeseismydownfall
Seems many agree that their kids are not financially responsible at the start of "adulthood". I will look at moving funds where I can to stay in control until I feel she is more financially responsible.

If you are working hard, and making sacrifices to save for your children, I think it is a VERY bad idea to hand it over at 18, 21 etc. A well managed pot of savings that you manage and distribute means that they get to have the financial learning curve that we all need but with a safety net that you (quietly?) have for them.

@DinoGreen She is aware of the account, it does become an adult savings account at 16. I've spoken to the bank and they've said when it swaps over I lose control and she becomes the trustee of her own funds. She already has online banking with the same bank so she'll see it once they've processed the changes.
My only options are to leave the money in the account or open a new account and transfer what I want to keep in savings under my control before it happens.

@Chelyanne in that case if I were you I’d move it to another bank before she turns 16 so you retain control.

Have you got a separate pot help her with big purchases like house, or car, first child? If you give it her at 18 she might expect more where it came from!
My DHs parents saved money for their kids. He got a a few hundred quid to spend at 18, then a bigger amount when each child bought a house/got engaged/expecting first child. He would have 100% spent it on a new car at the time which he didn't actually 'need' and is really grateful that they didn't give it to him then.
She won't learn to save if you keep giving her money!

@User65412 She knows we can not offer unlimited help with funds. I've already told her I will not give her that kind of money if she doesn't learn how to manage it well. My parents have also been saving for all of them but it's up to them when they give control of those funds.
I will move most of the money to keep it safe but leave her some of it to take care of herself (hopefully she'll add to it), she can have the rest when she NEEDS it.

DinoGreen if the savings accounts are opened in the child's name then as a parent you are just the trustee until they are 16 or 18.

It doesn't matter if you move it to another bank - at the age the child is deemed responsible by the bank it will become theirs to access and nothing to do with you any more.

The bank will write to your child directly and your access over the account will cease.

In order to "retain control" at that age, you would need to have them agree to open a joint account with you as signatory. There's really no way of keeping money saved in your child's name secret from them - and there shouldn't be, either, it's effectively deceiving them and is against the law.

If you want your children to have savings for them that they can't have access to until a time of your choosing, then you need to save in your name not theirs, and sign it over when you feel the time is right.

Sounds like a great plan. It's lovely that you've saved for her but you'd end up feeling rightly frustrated if she whittled it away or like others have said, was coerced into spending it on something else. Things like cars/travelling can be done with very little and she will learn the value of money better that way.
I also agree that she doesn't necessarily need to know about it. That way she has to work hard and save - what you give her on top of that is bonus rather than her subconsciously relying on it.

[quote Chelyanne]@User65412 She knows we can not offer unlimited help with funds. I've already told her I will not give her that kind of money if she doesn't learn how to manage it well. My parents have also been saving for all of them but it's up to them when they give control of those funds.
I will move most of the money to keep it safe but leave her some of it to take care of herself (hopefully she'll add to it), she can have the rest when she NEEDS it.[/quote]
You will only be able to move money that is in her name into another account that is in her name. And at the age she becomes an adult it is hers to do what she likes with and your access/control over the account will cease.

Whatever you do now, you need to have the conversation with her about ongoing control of the accounts and what the money is to be used for. Because if you want to retain any control then you need a joint account with her.