Do you have questions on financial planning for your children’s future? £200 voucher to be won

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Created for OneFamily

Please note we are no longer taking questions on this Q&A. You can view Nici's answers here

It can be difficult knowing where to start when planning financially for your children’s future. We’ve invited Nici Audhlam-Gardiner, OneFamily Chief Commercial Officer and expert in child and family savings to answer your questions.

• Everyone who shares a question below by 1 March will be eligible for the prize draw.
• One lucky Mumsnet user will win a £200 voucher from a store of their choice
• Nici will be back online in a couple of weeks to answer a selection of your questions.

About Nici Audhlam-Gardiner

Nici is passionate about empowering families to make money work for them, from driving OneFamily’s volunteering efforts with local educational charities to improve life chances, to making sure OneFamily products are accessible and easily understood by all. As a mother of two teens, Nici has navigated (survived!) the early years of juggling work and child care, putting the right financial foundations in place for her children, and is now knee-deep in negotiating monthly allowances and post-exam incentive schemes!

Here’s what OneFamily has to say

'As a member-owned business, we are interested in helping create a better financial future for Britain’s young people. From providing accessible, easy to understand products to awarding education grants and giving extra support to customers who need it, we are focused on Inspiring Better Futures.'

So whether you’d like to know the best ways to invest for your children, how much they will need when they turn 18, or you’re after advice on how to support them to become financially savvy, post your question on the thread below.

Thanks and good luck with the prize draw!

MNHQ
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As interest rates are so low, where should I be investing to get the best return?

I want to have start saving for my DS, but have very little spare money, and after the utility bills are going up even less - If I open an ISA, but do not manage to save enough, will they close it ? -is there a minimum each year I need to put in.

Can I switch an ISA in the future - If I find one with a good introductory interest rate ?

I currently save £10 per month for my child but am worried that the cost of living outstrips it's value. Can you suggest a better way to invest money for her? Thank you.

Should I be looking into a Junior SIPP or stick with the Junior ISA? I don't hit the JISA savings limits if that's relevant.

My DS has a very low income job, and is likely to find independent living tricky.
What are the implications if I pay into a pension for them?

What are the top three things I need to be doing to offer a better financial future for a child?

We save a lot for our daughter but I'm aware that by 18 she will have a significant amount in her bank account. Interest rates are much better on her accounts than ours but I am concerned about her being a silly 'only just adult' and blowing it all aged 18!

Apart from teaching her how to manage money sensibly, is there any way to protect that money?

Do you have any recommendations for Junior SIPP providers?

Having grown up with little and knowing my parents constantly worried about money. I grew up determined to work hard and earn sufficient money, I also shared my parents worry and this impacted on making friends and going out in my teenage years as all my friends were given a generous allowance that enabled them to go out more than I.
I don't want my children to share this unhappiness but also want them to understand the value of money. I worry they won't if money is available to them. How do I make sure they understand the value of money and the importance of planning for the future?

Hi, I am looking for some advice on senior care for my grandpa. It's difficult to take care of his daily needs due to my hard-working schedule. Can someone advise me for a whole daycare facility?

What do you think the retirement age will be when DS1 and 2 are at that age (they are 11 and 13 now) and how much would you put away as a minimum in an ISA for them.

Would investing in shares be a better option long term - given the miniscule interest rates we have. Are there shares you would recommend - or should I stay well clear - thanks

My FIL and MIL want to leave their home to our children - for their future, and have written this in their will, I would like this to secure their financial future, but if they ever have to go into care, or have a deferred agreement for this, it would wipe out any equity.
They are both fit and well with no health conditions, do you think it would be best to sign the house over to them now - (deeds etc) until they are at an age when they can be made aware of this (they are 13 an 15) and I would like them to maybe rent the house out and live off the income - really stressed over this ....

Is there any real advantage, in terms of credit rating, for a child current account which is later converted to an adult current account?
e.g. my credit file shows age 33, longest account history 29 years
Does this help my credit rating now as if so, I should open a current account with a big name bank for my baby.

I'd love to know ways I can start teaching children in an age appropriate way about money and the importance of managing their money with savings accounts/investments etc. Wish this stuff was taught in schools!

With interest rates being so low - what's the next best option rather than banks ? (thinking long term shares - gold - property) £3k to invest

Hi Everyone, thanks for all the questions.

I'm going to dive in and do my best. My responses below are my opinions on Children's finances, and do not constitute financial advice. I can see a lot of people wanting to help their children's financial future, which is great.

@Meandmini3

Ooh great topic.

So I’m wondering if I’m better off saving for the children in ISAs in my and my husband’s names rather than ones for my children. We don’t manage to save our own ISA allowance and this would let us keep control of the money. Any pitfalls to consider?

Good question @Meandmini3. It's worth knowing that at age 18 it isn't an automatic cheque that gets sent to the maturing teen. The money stays in a continuation account until a decision is made on what to do with it. In terms of saving in an ISA of your own to give to the child, depending on the amount you plan to give and over what time, that money could be subject to inheritance tax rules. Any money invested in a child’s name will normally be treated as a gift to the child at that point and start the clock running for IHT (Inheritance Tax) purposes meaning that after 7 years the money becomes the child’s and outside the donor’s estate – although if the gift is out of earned income it will be outside the estate immediately. Also if you die and the money is in your ISA, your child won’t be able to access the money until your estate is wound up, which could be some time.

@Cismyfatarse

How do I help to ensure they can save for a property?

Hi @Cismyfatarse, the simplest way to help your child save for their property is to invest in a Junior ISA while they are under 18, and then for them to mature that Junior ISA into a Lifetime ISA when they reach 18. By transitioning from a JISA to a LISA the money remains untaxed, and the LISA also offers an additional bonus, with the government paying in an extra £1 for every £4 save (up to a maximum £1000 bonus per year). The LISA helps keep focus on the savings goal, because the money can only be used for purchasing a house or retirement. There is a penalty to pay if the money is used for anything else.

@PiffleWiffleWoozle

How can I encourage the kids to be interested in budgeting and saving and what is the right age range to be working on this please?

It's never too early to start with your kids @PiffleWiffleWoozle. When they are very young, basic numeracy is the best starting point. Counting, adding, taking away. As they get older, there are many teachable moments if you can expose them to your own savings plans, budgeting etc. We also have a few useful articles to help engage them, such as 6 top tips for long-term saving, Are you in control of your spending - or are your emotions? and Trick yourself into saving.

@EarlGreyHot

High outgoings (I'm looking at you childcare) and a lack of savvy mean I haven't started saving for my 3 DC but feel overwhelmed by all the information out there. What is your number one tip for anyone wanting to start saving for their children's future?

Hi @EarlGreyHot, yes childcare can take a big bite out of what we would like to put to one side can't it? With saving, the earlier you start the better, but it is never too late. Even the smallest amount saved regularly, thanks to compound interest can result in good returns. So, my number one tip is however small the amount you can put to one side is, make it consistent and over time it will be a useful amount.

@kagerou

I want to start an account or investment for my 6 month old baby that she can use later in life. What is the best way to go about this?

Hi @kagerou, a Junior ISA (JISA) is the simplest way to invest money that your daughter can get access to when she turns 18, all those years away! The JISA is a tax-free wrapper, so she won't lose any of the interest she gains to the tax man. In fact, because the maturity date for your Daughter's investment will be so far away, she's a perfect candidate to invest in stocks and shares. These investments can go down as well as up so your child may get back less than has been put in, but in every 18 year period over the last 50 years, stocks and shares have grown more than cash accounts (where money is protected). That finding comes from a Barclays study in March 2020.

@PerrinAybara

I want to start putting £10 a month into saving for my 8 year old, plus a lump sum to cover all the monthly £10s they've missed since birth.

I am fairly risk averse when it comes to finance. What options are there apart from a junior ISA and what potential problems do I need to look out for?

Hi @PerrinAybara with 10 years to maturity there’s still plenty of time to ride out ups and downs of market, so even as a fairly risk averse individual its worth remembering that stocks and shares investment doesn't need to mean 100% risk. You can find balanced offerings that are part cash, part stocks and shares so you're less exposed (but your chance for growth is also reduced). Investments in cash won't fluctuate with the market, but inflation means that your money won’t be worth in the future what it is today, so you will need to weigh this up too. We have a really useful video which explains stocks and shares.