Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • akadessie
    • By akadessie 5th Sep 17, 1:37 PM
    • 2Posts
    • 0Thanks
    akadessie
    Savings for 17 year olds
    • #1
    • 5th Sep 17, 1:37 PM
    Savings for 17 year olds 5th Sep 17 at 1:37 PM
    My eldest is 16, 17 in November. We've saved over the years and built up approx £12K for him, and I'm now wondering how to get the best out of it until we actually hand it over. My plan is to build this up into a house deposit for him when he gets there (mid 20s or so). I'd prefer it to be a surprise. I think the way forward is to move the savings into a child saver account with Barclays, which pays 3.5% until his 18th birthday I think, but also to open up a Help to Buy ISA; who knows if these will still be paying out by the time he gets to actually buying, but the interest is pretty good and could include a decent sum if you do actually use as a deposit. Does this sound like the right way forward? I'm happy for the money to be tied up, but don't have much of a risk appetite.
Page 1
    • Wookey
    • By Wookey 5th Sep 17, 2:43 PM
    • 804 Posts
    • 404 Thanks
    Wookey
    • #2
    • 5th Sep 17, 2:43 PM
    • #2
    • 5th Sep 17, 2:43 PM
    I wouldn't be keen on giving an 18yo access to that kind of sum, i would be more inclined to wait until he is earning for himself and can appreciate the value of money. You could whilst waiting pay for driving lessons for him from the pot and look to keep it in the highest savings accounts as possible or encourage him towards a help to buy isa with smallish payments from the pot as he increases it himself. Once your sure he is grounded and values what he has then surprise him with a lump sum payment into the isa with the balance.

    There is also other things that could come up, is Uni likely? or perhaps learning a trade? If living away from home for Uni then some funds going towards expenses there would always be welcome, if learning a trade there can be transport and tool costs involved which would stand him in good stead for many years to come.
    Last edited by Wookey; 05-09-2017 at 2:47 PM.
    Norn Iron Club member No 353
    • xylophone
    • By xylophone 5th Sep 17, 3:16 PM
    • 23,428 Posts
    • 13,622 Thanks
    xylophone
    • #3
    • 5th Sep 17, 3:16 PM
    • #3
    • 5th Sep 17, 3:16 PM
    If you and your husband pay your savings into an account held in bare trust for your son, he has the right to access and control at the age of 18.


    He may wish to open a LISA then.



    http://www.moneysavingexpert.com/savings/lifetime-ISAs

    Perhaps you and your husband might each open a Nationwide Flex direct account and a joint Flexdirect, cycling in/out the required £1000 a month from an external account.

    You could also open a Flexclusive monthly saver each.

    After a year has passed, your son will be 18 and you can think what you would like to do with the cash.
    • Eco Miser
    • By Eco Miser 5th Sep 17, 4:07 PM
    • 3,176 Posts
    • 2,940 Thanks
    Eco Miser
    • #4
    • 5th Sep 17, 4:07 PM
    • #4
    • 5th Sep 17, 4:07 PM
    ... a help to buy isa with smallish payments from the pot as he increases it himself. Once your sure he is grounded and values what he has then surprise him with a lump sum payment into the isa with the balance.
    Originally posted by Wookey
    Can't pay lump sums into a HTB ISA.
    Eco Miser
    Saving money for well over half a century
    • MallyGirl
    • By MallyGirl 5th Sep 17, 4:31 PM
    • 2,022 Posts
    • 6,847 Thanks
    MallyGirl
    • #5
    • 5th Sep 17, 4:31 PM
    • #5
    • 5th Sep 17, 4:31 PM
    My eldest is 16, 17 in November. We've saved over the years and built up approx £12K for him, and I'm now wondering how to get the best out of it until we actually hand it over. My plan is to build this up into a house deposit for him when he gets there (mid 20s or so). I'd prefer it to be a surprise. I think the way forward is to move the savings into a child saver account with Barclays, which pays 3.5% until his 18th birthday I think, but also to open up a Help to Buy ISA;
    Originally posted by akadessie
    it can't be a surprise if you are thinking HTB as he will need to open it himself. I am planning to get DD to open one when she turns 16 as the rate is pretty good - she gets marginally better from her JISA but that is fully funded.
    There seems to be a grey area where 16/17 year olds can have JISAs and adult products as well.
    • akadessie
    • By akadessie 5th Sep 17, 5:32 PM
    • 2 Posts
    • 0 Thanks
    akadessie
    • #6
    • 5th Sep 17, 5:32 PM
    • #6
    • 5th Sep 17, 5:32 PM
    Thanks all, to be honest my plan is to get the paperwork, fill it in, put it in front of him at the right moment and tell him to sign, and there's a good chance he'll sign without looking up from his phone and won't know what I've done. I can then keep the paperwork in a box and he'll have a load of money that he hasn't quite cottoned on to. Don't know how realistic that is.

    He's probably going to university, but I am planning on paying for that as far as I need to from normal income plus student loan. I'd like to build up a secret pot of money for the day when he decides he wants to buy - I remember thinking back in 97 when I did it how remote the deposit seemed, whereas other stuff is always obtainable, if a stretch.
    • CorrieCooper
    • By CorrieCooper 6th Sep 17, 5:24 AM
    • 6 Posts
    • 14 Thanks
    CorrieCooper
    • #7
    • 6th Sep 17, 5:24 AM
    • #7
    • 6th Sep 17, 5:24 AM
    Yes, I was also thinking about HBT.
    • xylophone
    • By xylophone 6th Sep 17, 9:09 AM
    • 23,428 Posts
    • 13,622 Thanks
    xylophone
    • #8
    • 6th Sep 17, 9:09 AM
    • #8
    • 6th Sep 17, 9:09 AM
    he'll have a load of money that he hasn't quite cottoned on to. Don't know how realistic that is.
    It's not realistic from the point of view of tax/any benefits he may need to claim.
    • Westie983
    • By Westie983 6th Sep 17, 10:24 AM
    • 3,842 Posts
    • 14,002 Thanks
    Westie983
    • #9
    • 6th Sep 17, 10:24 AM
    • #9
    • 6th Sep 17, 10:24 AM
    Thanks all, to be honest my plan is to get the paperwork, fill it in, put it in front of him at the right moment and tell him to sign, and there's a good chance he'll sign without looking up from his phone and won't know what I've done. I can then keep the paperwork in a box and he'll have a load of money that he hasn't quite cottoned on to. Don't know how realistic that is.

    He's probably going to university, but I am planning on paying for that as far as I need to from normal income plus student loan. I'd like to build up a secret pot of money for the day when he decides he wants to buy - I remember thinking back in 97 when I did it how remote the deposit seemed, whereas other stuff is always obtainable, if a stretch.
    Originally posted by akadessie
    Although I get the idea you are trying to do, but if your son goes into the bank for any reason and asks about his accounts he will be given the balance of the H2B ISA, which you can deposit £200 each month, and he will have access to those funds to withdraw and spend as he wishes. H2B Isas are not fixed products.

    You obviously will have to take a good few years to build up the pot of money, but he will know about the account, and he could remove all the money in the account as soon as its funded, either by you, or his contributions.

    Keeping the paperwork aside may not mean he will not know about the account.

    If you want to keep the money for him and him to not have access you will need to put the money in trust for him, and access passes to him at 21 or whatever age you decide on when the trust account is opened.

    The other options currently on the markets, mean the children (young adults) have access to the funds at 18. This could be young saver accounts, JISA's and H2B Isas.

    Westie983
    Save 12k in 2017 #16 Total £22,555/£12,000 = 187.95%
    Sealed Pot Challenge ~ 11 #97 Total (£410) + £0.00/£800 = 51.25% ( x 11)
    Xmas 2017 £1 a Day #6 Total £400/£365 = 109.58%
    Virtual Sealed Pot #1 Total £1,600/£1,800 = 88.88%
    £2 Savers Club 2017 #3 Total (£1,450)+£50/£2,000 = 75.00%

    Total £26,465/£16,965 = 155.99%

    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • MallyGirl
    • By MallyGirl 6th Sep 17, 11:30 AM
    • 2,022 Posts
    • 6,847 Thanks
    MallyGirl
    I have just tried to educate my DD about money so that she doesn't go wild when she comes into her money at 18. She knows she has a 'secret account' already as she got to the post before me one day but she just handed the statement over with a 'I don't think I am supposed to see this' comment.
    She plans to do a 5 year course at uni so she may need some of it just to live on.
    We also have the advantage that her wastrel cousin got given some money for his 18th which he spent on a car (but not insurance) and a lot of drink and drugs. He lost his licence and was booted out of his parents home. It has served as a brilliant example of how not to behave. Thankfully the lad seems to have turned his life around somewhat now and is back in contact with the family but he has many burned bridges to rebuild.
    • Wookey
    • By Wookey 7th Sep 17, 11:55 AM
    • 804 Posts
    • 404 Thanks
    Wookey
    I have just tried to educate my DD about money so that she doesn't go wild when she comes into her money at 18. She knows she has a 'secret account' already as she got to the post before me one day but she just handed the statement over with a 'I don't think I am supposed to see this' comment.
    She plans to do a 5 year course at uni so she may need some of it just to live on.
    We also have the advantage that her wastrel cousin got given some money for his 18th which he spent on a car (but not insurance) and a lot of drink and drugs. He lost his licence and was booted out of his parents home. It has served as a brilliant example of how not to behave. Thankfully the lad seems to have turned his life around somewhat now and is back in contact with the family but he has many burned bridges to rebuild.
    Originally posted by MallyGirl
    This is something that sadly comes up on these forums fairly regularly, it isn't just about the son or daughter but the friends they have who can drag them down when money is freely available. Years ago you had to physically travel to a bank to get your money out, now there are ATM's everywhere and mobile phone banking,cards and apps that mean physical money is no longer required for most things at any time of day or night.
    Norn Iron Club member No 353
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

179Posts Today

1,761Users online

Martin's Twitter