Buying shares for children, please help

Elenathion

Hi there,

I hope someone can give me some advice.

I have 3 yr old twin nephews and rather than just buy them some toys for christmas I've decided that I would like to invest for them.

My idea was that I would like to pay £100 every christmas and birthday until they are 18 and I think I would like to do it in shares. I have no idea how to do this though. I've read some articles on here about shares and brokers and I've looked at the Hargreaves Lansdown discount brokers site which seems okay to me but as a complete novice I'm not sure that I'm understanding all of this properly.

So, is Hargreaves Lansdown a good choice for investing this small amount twice a year for the next 15 years? Also, as I am on benefits, I don't really want a large amount of savings in my name, so can I open such an account in my nephews' names? I should clarify that I have no intention of touching this money or interacting with it at all, other than to add to it on these 2 occasions.

I know I could just open a savings account for them or add to their child trust fund but I would rather go the share route.

Lokolo

No....

Hargreaves and Lansdowne require £1000 for a one off investment for starters.

Secondly, children cannot own shares in their own name because they are under 18. However they can be 'looked after' by parents and such.

If you are serious you should think about Child Trust Funds, where you can put money in for children, either save or invest, your choice, and the money is theres when they turn 18.

Elenathion

Oh right, I didn't realise that.

I found this Growth Trust by Legal & General. Would this be any good?

http://www.legalandgeneral.com/investments/campaigns/investing_for_children/index.html

Lokolo

Unfortunately I am crap with CTFs as I am not sure about who providers are etc.

Try reading this:

http://www.moneysavingexpert.com/savings/child-trust-fund-vouchers

And if you have any questions it would be best to ask them here:

http://forums.moneysavingexpert.com/showthread.html?t=30719

As that is the CTF page. Other members will see that someone has commented and more likely to read and reply.

RayWolfe

Look up Investment Trust Savings Schemes.
You will find exactly what you are looking for.

peawack

You can put money into SIPP for your children- up to £3600 per year, and they can claim basic rate tax relief on it.