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Kids savings account
FrugalWeirdo83
Posts: 46 Forumite
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
Sealed pot challenge 196
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Comments
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Save the money in your name and give it to her when you think she's ready.0
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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 betterRemember the saying: if it looks too good to be true it almost certainly is.0
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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.0 -
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 life0 -
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.0 -
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.0 -
I did not know that!
Even better. Thanks for the info. 0 -
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! 0 -
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.Debt 1/1/17 - Credit Cards £17,280.23; overdrafts £3,777.24
Debt 5/1/18 - Credit Cards £3,188; overdrafts £00
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