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    • Peaches
    • By Peaches 14th Oct 16, 7:51 PM
    • 9Posts
    • 2Thanks
    Peaches
    Savings account for my son
    • #1
    • 14th Oct 16, 7:51 PM
    Savings account for my son 14th Oct 16 at 7:51 PM
    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! :-)
Page 1
    • mt99
    • By mt99 14th Oct 16, 8:21 PM
    • 109 Posts
    • 50 Thanks
    mt99
    • #2
    • 14th Oct 16, 8:21 PM
    savings
    • #2
    • 14th Oct 16, 8:21 PM
    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.
    • TheShape
    • By TheShape 14th Oct 16, 8:24 PM
    • 441 Posts
    • 221 Thanks
    TheShape
    • #3
    • 14th Oct 16, 8:24 PM
    • #3
    • 14th Oct 16, 8:24 PM
    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! :-)
    Originally posted by Peaches
    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?
    • Peaches
    • By Peaches 14th Oct 16, 8:35 PM
    • 9 Posts
    • 2 Thanks
    Peaches
    • #4
    • 14th Oct 16, 8:35 PM
    • #4
    • 14th Oct 16, 8:35 PM
    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?
    Originally posted by TheShape
    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.
    • adindas
    • By adindas 14th Oct 16, 8:37 PM
    • 2,861 Posts
    • 1,284 Thanks
    adindas
    • #5
    • 14th Oct 16, 8:37 PM
    • #5
    • 14th Oct 16, 8:37 PM
    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?
    Originally posted by TheShape
    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 ....
    Last edited by adindas; 14-10-2016 at 8:43 PM.
    • Peaches
    • By Peaches 14th Oct 16, 8:43 PM
    • 9 Posts
    • 2 Thanks
    Peaches
    • #6
    • 14th Oct 16, 8:43 PM
    • #6
    • 14th Oct 16, 8:43 PM
    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 ....
    Originally posted by adindas
    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 issue
    • TheShape
    • By TheShape 14th Oct 16, 8:44 PM
    • 441 Posts
    • 221 Thanks
    TheShape
    • #7
    • 14th Oct 16, 8:44 PM
    • #7
    • 14th Oct 16, 8:44 PM
    Does he have a current account? A high rate regular savings account would be the first thing to consider.
    • YorkshireBoy
    • By YorkshireBoy 14th Oct 16, 8:48 PM
    • 28,317 Posts
    • 16,126 Thanks
    YorkshireBoy
    • #8
    • 14th Oct 16, 8:48 PM
    • #8
    • 14th Oct 16, 8:48 PM
    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.
    Originally posted by Peaches
    £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 a 7/8 year timescale he'll thank you for doing the same I'm sure (maybe not now, but certainly later).
    • Peaches
    • By Peaches 14th Oct 16, 8:49 PM
    • 9 Posts
    • 2 Thanks
    Peaches
    • #9
    • 14th Oct 16, 8:49 PM
    • #9
    • 14th Oct 16, 8:49 PM
    Does he have a current account? A high rate regular savings account would be the first thing to consider.
    Originally posted by TheShape
    Yes! He has a HSBC current account and I have a Nationwide kid's account for him that's he's had since a baby.
    • Peaches
    • By Peaches 14th Oct 16, 8:51 PM
    • 9 Posts
    • 2 Thanks
    Peaches
    £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).
    Originally posted by YorkshireBoy
    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 :-)
    • Peaches
    • By Peaches 14th Oct 16, 8:55 PM
    • 9 Posts
    • 2 Thanks
    Peaches
    Oh. I think I should have posted this in the savings and investments section!
    • McKneff
    • By McKneff 14th Oct 16, 10:04 PM
    • 34,737 Posts
    • 44,730 Thanks
    McKneff
    \many a plan goes tots up when a hasty marriage is on the cards, it can and does happen.

    As does a lot of other things.

    I would maybe tie it up for 3 years at a time.
    No one can make you feel inferior without your consent
    • xylophone
    • By xylophone 14th Oct 16, 10:20 PM
    • 19,179 Posts
    • 10,893 Thanks
    xylophone
    Help to Buy ISA? Lifetime ISA next year?

    A couple of Tesco current accounts?
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