savings for baby

[crazyhead]

This is a bit early to be thinking of this ? but I wondered what your attitudes were to setting up a savings account for your new baby, and encouraging relatives at least to put little gifts into that instead of buying too much? I know with friends you can?t really ask, and I wouldn?t, but I?ve got friends whose LOs get given so much expensive c**p when you know later on they will really need it so much more.

I probably sound really, really anal. But I work in higher education, and so the costs of education etc are at the top of my mind (if he ends up going ? if not it?ll be something else) and I?d so much rather any baby of mine had hand-me-downs when he is small (rather than luxuries he doesn?t need) but began to have a little bit of savings to help him later.

Anyone out there think like this?

I suggested something not dissimilar a while ago and got really flamed for it! Personally, I think it's a goo idea (I work in HE too - not sure I'm going to encourage my DC to get a uni degree though the way it's going!!)

Surprised you were flamed for it lightsandshapes, I think most people do this don't they? We certainly do, although I'd never suggest £ as gifts to anyone but grandparents.

Top tip though, don't raid the accounts to buy a house otherwise you spend forever paying back your small children!!

Probably everyone does do it - think I'm just musing on what I want for my DC more generally.

@lightsandshapes - what an odd thing to flame you for! It is interesting that you work in HE as well - I think it is quite affecting to see students now, in that they have far more 'stuff' and look a lot better dressed etc than when I was a student, but are under much more pressure financially and don't have the freedom of choices that I feel I had. It makes me want my DC to not have lots of luxuries but to have the freer choices - that is probably where the antipathy to expensive, highly disposable presents comes from!

@virgiltracey - I know what you mean about the limits of who you can really suggest it to - I think I have more family though who'd really prefer to help with savings than just my grandparents, but that is just my family.

When I was a kid most b'day presents from people were very small sums of money that just got put into savings by my parents for me. I'd actually much rather do that for my friends' kids (hard to know the etiquette of offering) and certainly will for my sister's.

...and that made me laugh about dipping into the baby accounts for a deposit. I daresay I'll come to that at some stage - I feel like weeping when I look at house prices in London

It's a good idea if worded correctly.

If someone said what can I get you right now I say nicely.

I have got everything I think I need. If it's a girl I would like some more clothes in a bigger size but apart from that we are sorted! Maybe a little gift into their savings account would be nice so they can have it when older/ towards x baby thing when needed

Alot of my relatives actually gave us cash due to distance so we put it in his savings account and some was used for his stage 1 car seat.

I think its a good idea. And you don't have to 'ask' or suggest donations. I think if you drop into conversation that you have opened a savings account for your DC to help you save for their future (education, their house deposit, etc) then naturally some people (particularly grandparents) will be keen to pay into that as presents rather than buying something that might only be used for 3 months.

With university fees and house prices/mortgage deposits going the way they are, I think it is best if we start saving for them now!

Savings are a great idea. Much much better than all the money that gets wasted on useless presents and (my personal bugbear) all the blardy flowers that drop petals everywhere and die!

We've been working with our financial advisor on savings for DD1 (she has Child Trust Fund, Halifax Savings and we've just set up a pension - back to that in a moment) and DC2 (birth imminent) will have a Child ISA. Child ISAs are supposed to be being introduced later this year, so you could stick the money elsewhere for now.

When we set up account with Halifax for DD1 it was the highest interest rate you could get for a child account and I think it's still quite competitive.

Setting up a pension for a child might sound bonkers but it's a great way to save for them and protect their future, and it's tax-efficient.

Personally the way that tuition fees, house prices, car insurance prices are going, I think the best thing to do for our kids is save so that they can have a chunk of money around age 18-20 to at least give them a leg-up in life.