Savings account for my son
Peaches
Posts: 9 Forumite
Hi All,
Was wondering if anyone could give me a bit of advice.
My son will be putting away savings of 200 pounds per month from this month, rising to 250 next year then 300 in 2 1/2 years (will be saving more as his income rises!)
He is 17. He won't need to be access the money for around 7 or 8 years. We have no idea what kind of account would be best for this, or with which bank.
Any help would be much appreciated! :-)
Was wondering if anyone could give me a bit of advice.
My son will be putting away savings of 200 pounds per month from this month, rising to 250 next year then 300 in 2 1/2 years (will be saving more as his income rises!)
He is 17. He won't need to be access the money for around 7 or 8 years. We have no idea what kind of account would be best for this, or with which bank.
Any help would be much appreciated! :-)
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Comments
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If you are looking at an 8 year timeframe they the perceived wisdom is not to use a savings account but to invest in a stocks and shares isa. However I don't know your full circumstances of course.0
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Hi All,
Was wondering if anyone could give me a bit of advice.
My son will be putting away savings of 200 pounds per month from this month, rising to 250 next year then 300 in 2 1/2 years (will be saving more as his income rises!)
He is 17. He won't need to be access the money for around 7 or 8 years. We have no idea what kind of account would be best for this, or with which bank.
Any help would be much appreciated! :-)
Are you sure he won't need the money in those 7/8 years? That's a long time in the future for a 17 year old. What will/might the money be needed or wanted for at the end of those 7/8 years?0 -
Are you sure he won't need the money in those 7/8 years? That's a long time in the future for a 17 year old. What will/might the money be needed or wanted for at the end of those 7/8 years?
Yep fairly sure. He earns 15.5 k as an engineering apprentice which will raise to 18k then 22k in stages so he earns a decent wage for someone living at home (he won't be charged rent or anything) money will be a decent sized deposit for a flat.0 -
Are you sure he won't need the money in those 7/8 years? That's a long time in the future for a 17 year old. What will/might the money be needed or wanted for at the end of those 7/8 years?
That is also what I have thought. In general it is too ambitious target I will say. Unless of course if his mum is saving for him and he did not know he has saving until it has been reveled in the future.
Nowadays teenagers, young people spend a lot of money for gadgets. Mobile phones contracts, There are too many gadgets to buy nowadays.
Not to mention booze, exotic wild holidays, driving lesson, new car ....0 -
That is also what I have thought unless her mum is saving for him and he did not know he has saving.
Nowadays teenagers, young people spend a lot of money for gadgets. Mobile phones contracts, There are too many gadgets to buy nowadays.
Not to mention booze, exotic wild holidays, driving lesson, new car ....
He will also have plenty of money left over to do this. He has already passed his test and has a car from previous savings. He is committed to building up his savings so that's not an issue0 -
Does he have a current account? A high rate regular savings account would be the first thing to consider.0
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£15,500 gross and no rent means a monthly take home, excluding any pension contributions, of nearly £1,150. £200 is less than 20% of this figure, so presumably he's saving elsewhere as well? If not, he must be having a lot of fun blowing over £200 a week on 'stuff'?He earns 15.5 k as an engineering apprentice which will raise to 18k then 22k in stages so he earns a decent wage for someone living at home (he won't be charged rent or anything) money will be a decent sized deposit for a flat.
When my kids were that age I encouraged them to adopt a 'spend half/save half' policy. Over a 7/8 year timescale he'll thank you for doing the same I'm sure (maybe not now, but certainly later).
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YorkshireBoy wrote: »£15,500 gross and no rent means a monthly take home, excluding any pension contributions, of nearly £1,150. £200 is less than 20% of this figure, so presumably he's saving elsewhere as well? If not, he must be having a lot of fun blowing over £200 a week on 'stuff'?
When my kids were that age I encouraged them to adopt a 'spend half/save half' policy. Over 7/8 year timescale he'll thank you for doing the same I'm sure (maybe not now, but certainly later).
Thanks for your message. We are fine with the savings agreement as it is. And yes, he has a lot of fun, has 2 holidays booked for next year :-)0 -
Oh. I think I should have posted this in the savings and investments section!0
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