Kids savings account

FrugalWeirdo83
FrugalWeirdo83 Posts: 46 Forumite
in Savings & investments
Hi I have a young saver account for my daughter and was thinking of changing it to a junior ISA but i dont really want her to have access to it at 18 as if she is anything like I was at 18 it will be blown on utter rubbish. Do Any accounts exist like this or can anyone give me any advise? Many thanks
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Comments

  • Mojisola
    Mojisola Posts: 35,557 Forumite
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    Save the money in your name and give it to her when you think she's ready.
  • jimjames
    jimjames Posts: 17,580 Forumite
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    Depending on their age you may also want to look at investments rather than cash savings as over the long term they should beat inflation far better
    Remember the saying: if it looks too good to be true it almost certainly is.
  • xylophone
    xylophone Posts: 44,286 Forumite
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    If this account is in your daughter's name, then you are simply a bare trustee and she has the right to access and control at age 18 (16 in Scotland).

    If you want to keep control, then save in your own name and gift at a time of your choosing.
  • NineDeuce
    NineDeuce Posts: 997 Forumite
    Why bother saving at all if you think she will waste it?

    Giving her the free reigns to a decent size of money that could be either blown or alternatively used to step up in life e.g. learn to drive, course, travelling..... as long as you make it clear to her that she isnt getting any more if she decides on the former... that is a lesson in life
  • tibbles209
    tibbles209 Posts: 169 Forumite
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    I think it would be worth splitting the money 2 ways;

    -75% into a savings account/ISA in your name (as per the previous posters if you are looking at a 10 year plus timescale worth seriously considering stocks and shares rather than cash). This way you keep complete control of the money and can choose if/when it should be passed to your daughter. In this case I would avoid telling her this money exists until you have decided to give it to her.

    -25% into a Junior ISA, with the understanding that this will become her money under her control at age 18. Talk to her about this money, involve her in decisions about how to invest it etc. I think it is extremely important for children/young people to learn how to manage money, and to learn this effectively you really do need to have some money to manage. Even if she does just fritter it all away in the end with nothing to show for it, perhaps she will learn something along the way, and the amount of damage she can do is limited as you are still holding the other 75% in your name.
  • Keep_pedalling
    Keep_pedalling Posts: 16,557 Forumite
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    tibbles209 wrote: »
    -25% into a Junior ISA, with the understanding that this will become her money under her control at age 18. Talk to her about this money, involve her in decisions about how to invest it etc. I think it is extremely important for children/young people to learn how to manage money, and to learn this effectively you really do need to have some money to manage. Even if she does just fritter it all away in the end with nothing to show for it, perhaps she will learn something along the way, and the amount of damage she can do is limited as you are still holding the other 75% in your name.

    The account can actually come under the child's control at 16. They can't withdraw anything until 18, but that gives them 2 years to get to grips with the idea of investing, so perhaps by 18 they won't be do keen to blow it all as soon as they have access to it.
  • tibbles209
    tibbles209 Posts: 169 Forumite
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    I did not know that! :) Even better. Thanks for the info.
  • Mojisola
    Mojisola Posts: 35,557 Forumite
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    Keep_pedalling wrote: »
    The account can actually come under the child's control at 16. They can't withdraw anything until 18, but that gives them 2 years to get to grips with the idea of investing, so perhaps by 18 they won't be do keen to blow it all as soon as they have access to it.

    Or two years to plan how to blow the lot! :)
  • Sarastro
    Sarastro Posts: 400 Forumite
    FrugalWeirdo83 wrote: »
    i dont really want her to have access to it at 18 as if she is anything like I was at 18 it will be blown on utter rubbish.

    I think you're focusing on the wrong end of the problem.
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