From saving to budgeting: Ask Plum's experts your family finance questions. £200 voucher to be won!

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It’s been a long (and probably expensive!) summer keeping the kids entertained or going away on holiday, and now everyone’s heading back to school, it’s a great time to think about getting your family finances back on track.

Whether you're thinking about university costs, saving for Christmas or your next holiday, managing childcare costs, or simply want to get better at budgeting, our experts Will and Susanna are here to answer any money questions you may have!

How to enter:

• Share your question in the thread by 11th October
• One lucky Mumsnet user will win a £200 voucher for a store of their choice
• Will and Susanna will be back shortly to answer a selection of your questions

Meet the experts

Will Bryant is Director of Wealth Strategy at Plum. He's a former financial adviser and dad of three boys, so brings both financial expertise and plenty of first-hand experience of family life.

Susanna Wood is Communications Lead at Plum and, as a parent herself, cares passionately about making money matters accessible to all. She'll be bringing a practical, everyday perspective to your questions about managing family finances.

About Plum

"When it comes to money, families need to make every penny count, but finding the time and energy to sort your finances is tricky.

We describe Plum as the ultimate smart money management app, because it automates those parts of personal finance you might find difficult or don’t have time for..

Our app can help you automatically set more money aside, choose saving and investment products that can grow your money over the long-term and analyse your spending so your money is working as hard as you do!

And for an extra boost, we'll give you a £10 welcome bonus when you deposit £1 into any Plum ISA within your first 3 months. T&Cs apply."

thank you - can you recommend any good planners pls

One thing you can do is to give them the opportunity to make financial decisions from a young age, so they can experience the consequences of their actions. If they get pocket money, give them a way to save it – you could set up a bank of mum and dad which pays "interest" every month while the money is saved.

You can also set up a Junior ISA in their name and choose the investments together. You can allow them to choose funds that specialise in something that they are interested in, such as Tech or specific brands they know and like. Sitting down together regularly to review the performance of the fund will help them get into the habit of checking in with their finances.

The important thing to remember here is that if the money was left to your son then it's legally his, even while he's young. You've done exactly the right thing managing it for him, and spending some on a laptop or driving lessons is absolutely fine as that's in his interest.

If he's having driving lessons now then he could well turn 18 before your Virgin fix even matures next July. Once he's 18 the money becomes fully his and he'd have every right to access it. I know that can feel daunting with a large sum, but the best thing you can do is have open conversations with him now about looking after it sensibly.

Thanks for your question! At Plum, our goal is to help you manage your money and be better off, so keeping your financial information and data safe is very important to us.

It’s important to note that Plum Fintech and a company and its subsidiaries are regulated by the Financial Conduct Authority (FCA) in the UK. This means we are subject to very strict regulatory systems and control requirements, and have to follow best practice at all times to retain our regulated status. You can find us (or any other app you are interested in) on the FCA website – if the app isn’t there, that’s a red flag!

When you sign up to Plum, you can connect your bank account to the app via Open Banking. However this is read-only access, which means Plum can only read your balance and transactions. It’s not possible to move money or make any changes to your account. Your logins remain with your bank, so none of your credentials are stored in Plum. And connections expire every 90 days to ensure you are still happy to reconnect and continue using Plum.

As for data security, Plum is backed by bank-grade encryption, your data stays private at all times and you remain in complete control over your financial information.

If you’d like to find out more about safety and security at Plum, we have a number of articles on our website that you might find interesting!

https://blog.withplum.com/money-protected-with-plum/

Having ISAs scattered across different providers is really common, and it can feel like a bit of a mess, so you're not alone in wondering about this.

The good news is that you can transfer old ISAs into a new one without losing the tax-free status and without it counting towards your current year's allowance. So bringing everything together into one place is really straightforward. It tidies things up, makes it much easier to keep track of your money, and if your older ISAs are paying poor rates then consolidating into a better-paying account means all your savings are working harder for you.

Before you transfer, the main thing to check is whether any of your existing ISAs are fixed-rate deals that haven't matured yet, as there could be penalties for moving early. If they're all easy-access or the fixed terms have ended, there's really no reason not to consolidate.

The key rule is to always use the official ISA transfer process rather than withdrawing the money and paying it back in yourself. If you just withdraw and redeposit, it counts as a new contribution and uses up your current year's allowance. A proper transfer keeps everything tax-free and protected. Most providers, including Plum, make this process pretty simple and handle the paperwork for you.

Once you've consolidated, it's much easier to see exactly what you've got, what it's earning, and you can manage everything from one app rather than logging into multiple accounts. It's one of those things that feels like a hassle to sort out but once it's done you'll wonder why you didn't do it sooner.

If you haven’t heard of us before, Plum is a smart money app that is designed to automate the bits of personal finance you might find difficult or don’t have time for. More than 2 million people have used Plum to manage their money!

You can link your bank account to Plum via Open Banking, which gives Plum read-only access to your transactions. The benefit of this is that Plum can quickly assess with technology how much you can afford to save, and you can also set it up to save automatically for you into a savings or investment account in the Plum app. You can open a Cash ISA, LISA or a variety of investment accounts via the app.

As for how we keep your money safe, I suggest you check out my answer to Summergarden above as that has lots of detail :)

https://blog.withplum.com/money-protected-with-plum/

"Safely" and "best return" are a bit of a balancing act, because generally the higher the potential return, the more risk you're taking on. But there are ways to find a good middle ground.

If you want your money to be completely safe, a cash ISA or a fixed-rate savings account will protect your capital and pay you a predictable rate of interest. You know exactly what you're getting and your money won't go down. The trade-off is that returns are lower and over the long term inflation can eat into the real value of your savings.

If you can afford to take on some risk and you're investing for five years or more, a stocks and shares ISA gives your money a better chance of growing in real terms. A globally diversified fund spreads your money across thousands of companies worldwide, which reduces the reliance on any single company or market. The value will go up and down along the way, so you need to be comfortable with that, but historically this kind of investment has outperformed cash over the longer term.

If you're not sure where you sit, you could split your money between cash and investments. Keep what you might need in the short term safe in cash, and invest the rest for the longer term.

Whichever route you choose, make sure you're using your ISA allowance so that any interest or growth is sheltered from tax, and look at the fees being charged, as high fees can really eat into your returns over time.

Plum offers both Cash ISAs and Stocks & Shares ISAs within one app, with access to a range of funds to suit different goals and risk levels.Plum is authorised and regulated by the Financial Conduct Authority (FCA). Your money is protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 for Cash ISA deposits and £85,000 for Stocks & Shares ISA investments. It's a straightforward way to get started, even with small amounts.

A Junior ISA is a great option here. You can pay in up to £9,000 per child per year, anyone can contribute, and everything inside it grows tax-free. The money is locked away until each child turns 18, which sounds like exactly what you're after.

With three children at different ages, you've got different time horizons to think about. Your youngest has 15 years, so there's plenty of time for investments to grow and recover from any bumps along the way. A stocks and shares Junior ISA with a low-cost global tracker fund could give that money the best chance of growing in real terms.

Your older two have 8 and 9 years, which is still a reasonable amount of time for investing, but as each child gets closer to 18 you might want to gradually move their money into something lower risk so a market dip doesn't eat into the value if they plan to use it at age 18.

One thing to be aware of is that at 18 the money becomes theirs to spend however they like. If that concerns you, saving in your own name and gifting when you're ready is the alternative.

If family members like grandparents want to contribute to birthdays or Christmas, pointing them towards the Junior ISA rather than more toys can be a brilliant way to build up the pot without it all falling on you. Even small regular amounts across three accounts will add up to something meaningful over time.

A Junior ISA is a really popular choice for exactly this situation. You can pay in up to £9,000 a year, anyone can contribute including grandparents and family, and everything inside it grows tax-free. The money is locked away until your daughter turns 18. Neither you nor she can withdraw it before then, allowing the funds to stay protected and grow. However, once she turns 16, she can take over managing the account.

You have two options within a Junior ISA. A cash version, which pays interest, or a stocks and shares version. With 14 years until your daughter turns 18, a stocks and shares Junior ISA is worth considering because your money has a long time to ride out any ups and downs and historically investments in global equities have outperformed cash over that kind of timeframe. A low-cost global tracker fund is a popular choice because it spreads your money across thousands of companies around the world. That said, investments can go down as well as up, so you'd need to be comfortable with that.

The one thing to be aware of is that at 18 the money becomes hers. You mentioned you'd prefer she not have access until then, and a Junior ISA does exactly that. But it's worth knowing that once she turns 18, it converts into an adult ISA and she has full control. You can't extend the lock beyond that point.
If that concerns you, the alternative is to save in your own name, using your own ISA for example, and gift the money when you feel she's ready.

With 14 years ahead of you, even small regular amounts can add up to something really meaningful. The most important thing is to get started and let time and compounding do the heavy lifting.

This is something a lot of parents think about, and it really depends on your children and your family situation.

If the money is in a Junior ISA or a savings account in their name, it becomes theirs at 18 and there's no way to extend that. If you'd rather keep control, the simplest option is to save in your own name instead and gift it when you feel the time is right. But honestly, with only a few thousand in each account, the bigger opportunity here might not be about locking the money away for longer, but about preparing your children to handle it well when they do get it.

Start involving them in their money now. Show them their account, let them see it grow, and talk about how it is invested and what it could be used for. Even young children can start to understand the idea that money saved today is worth more tomorrow. As they get older, you could sit down together and look at where the money is held, compare interest/ growth rates, or even explore what investing means. Making it feel like their project rather than something that's being done for them builds a completely different relationship with money.

You could also give them small financial decisions along the way. If they receive money for their birthday or christmas, let them choose how much to spend and how much to save. If they're old enough for pocket money or a part-time job, help them set up a simple budget. The 18-year-old who has been making these kinds of choices for years is far more likely to do something sensible with a lump sum than one who has never had to think about money at all.

The best protection isn't really about restricting access, it's about making sure they understand the value of what they've got before they get their hands on it.

There are several ways you can pass money to your children during your lifetime, and understanding the rules can help you make the most of them.
Everyone can give away up to £3,000 a year using their annual gift exemption, and this is immediately outside your estate for inheritance tax purposes. If you didn't use last year's allowance, you can carry it forward for one year, giving you up to £6,000. On top of that, you can make small gifts of up to £250 per person to as many people as you like, as long as they haven't already received part of your £3,000 allowance. There are also specific exemptions for wedding gifts depending on your relationship to the person getting married.

Beyond these, you can make larger gifts, but they only become fully exempt from inheritance tax if you survive for seven years after making them. If you die within seven years, the gift may be partially or fully taxable depending on when it was made, on a sliding scale known as taper relief.

There's also something called gifts out of normal expenditure, which can be really powerful. If you can show that ‘regular’ gifts come from your income rather than your capital, and that they don't affect your standard of living, these are immediately exempt with no seven-year rule. For example, regularly paying into a Junior ISA or a savings account for your children from your monthly income could qualify. If you plan on using this exemption make sure you keep detailed records.

The most important thing is to make sure that giving money away doesn't leave you short. There's no point reducing a future tax bill if it means you can't cover your own living costs or an unexpected expense. Make sure your own finances are secure first, including your emergency fund and retirement plans.

Great question. A Child Trust Fund matures when your child turns 18, at which point the money becomes theirs and the account converts into a mature CTF. The age a child can make investment choices is 16 so your son can actually start managing the account himself now. It’s worth knowing that some older Child Trust Funds may have higher charges, pay quite poor interest rates or may be invested in funds that aren't performing well, so it's definitely worth checking what's in there now.

Importantly you can transfer a Child Trust Fund into a Junior ISA, which often gives access to better rates or a wider choice of investments. It also means that at age 18 the JISA will convert into an adult ISA instead of becoming a mature CTF. Transferring now avoids the admin burden of requesting the mature CTF is moved to an adult ISA and the transfer doesn't use up any of the £9,000 annual Junior ISA allowance plus most providers will handle the paperwork for you.

So here's what I'd suggest doing. Start by sitting down with your son, look at the account together and talk about what it might be used for, whether that's helping with uni costs, learning to drive, or keeping it invested for something further down the line. You can't stop him spending it at 18, but a bit of guidance now could go a long way.

Then check how the money is currently invested or if it is sitting in cash. You can look at the return or interest he is getting and if it's not competitive, look into transferring it to a Junior ISA with a better deal. Then think about risk. With only two years to go, if the money is invested in shares, a market dip at the wrong time could eat into the value just before your son can access it. If the plan is to use the money at age 18 you might want to move it into something lower risk so the money is protected when he actually needs it.

Thank you very much for your answer and information.

I work for Plum so I am going to be a bit biased :) but yes I do use the app! I started using Plum in 2019 just before I joined the company and I still use it today!

Everyone uses the app slightly differently so what I do might not work for you, but as an example, I use the autosavings, particularly the Weekly Depositor and Pay Days savings, and I have both an easy access savings account (for emergencies and smaller goals, like Christmas and holidays) as well as a stocks and shares ISA where my money is split between three funds. I find this works really well for me so that I can have some money easily accessible but also some longer-term savings that are invested and put to work.

Plum is particularly easy to use if you are new to investing, as it has a handpicked choice of funds so it’s not too overwhelming. It makes managing your money simpler as you have all your finances viewable in one place!

It sounds like YNAB has served you really well, and the fact that you're already running the numbers shows you're approaching this thoughtfully.
The 25% tax-free lump sum is tempting, especially with your fixed rate ending and new rates likely to be much higher than 1.39%. Being mortgage-free frees up cashflow and brings real peace of mind however there are a few things to weigh up.

First, consider what that pension money could be worth if left invested. Even a smallish pot left to grow for another 10 or 15 years could end up being worth more than the mortgage interest you'd save, thanks to compounding. That said, investment returns aren't guaranteed while mortgage interest is a known cost, so there's something to be said for the certainty of clearing the debt.

Second, if you're only taking the tax-free cash and not drawing any taxable income from the pension, your ability to make future contributions shouldn't be affected, however it is important to know that taking any money from a pension flexibly that is above your 25% tax free amount may trigger a reduced pension annual allowance so your plan to redirect mortgage payments back into the pension could be affected.

Third, make sure you've got the basics covered first. Check you have a solid emergency fund, any high-interest debt is dealt with, and consider any protection needs that you have. Clearing the mortgage is satisfying but it shouldn't come at the expense of leaving yourself exposed elsewhere.
Finally, compare the mortgage rates available to you now. If you can get a reasonable fixed rate and the monthly payments are comfortable, keeping the mortgage and leaving your pension alone might leave you better off over the long term.

As there are so many moving parts to this decision, a one-off session with a qualified financial planner could be worth it. They can look at your specific numbers and help you see which route works out better for you.

The festive season can feel a little daunting when money is tight. Especially when it feels like everyone around you is splashing the cash on every consumer item.

The good news is that we still have a few months to go before Christmas, so tucking small amounts of money aside now can build up to a reasonable stash. See if you can cut any spending now to save a little extra ahead of the big day. Automate your savings using an app like Plum if this will help you put away more over time. When it comes to spending, remember to search first to compare the cheapest prices online and look to see if there are discount voucher codes available at those retailers.

An idea I really like is suggesting a spending limit per person for presents, or organise a secret santa with a fixed price for your family and friends. That way everyone gets at least one gift and no-one has to overspend. Consider homemade or secondhand gifts to cut costs further – there are some lovely things to be had on Vinted and eBay! For many people, a heartfelt drawing or poem from a beloved daughter or grandson is worth more than knowing they splurged all their money on something unnecessary.

You may also be nervous about the cost of Christmas lunch if you’re planning to host. There’s no shame at all in discussing this openly with your family and friends – most people are more than willing to contribute a dish or share the load in another way. You can even ask for a financial contribution towards the big day.

Wishing you all the best for your festive celebrations!