How much should I save for my nephew?

Leia_Stephens

After I have cleared my "small" debt, I am undecided whether to pay £25 or £50 into the account where I am saving money for my nephew .



To date I have paid in the equivalent of £25 for 44 months, but when I have used most of the money in his account to clear my debt, I am wondering whether to reimburse the account - by paying £50 for 44 months and then dropping the amount to £25 - or simply to continue to pay £25 .



If I pay the £25, I can save £100 for myself each month, whereas for the months that I pay £50, I would only be able to save £75 for myself. Obviously this means that I have £125 in total to split between myself and my nephew.



Are there any thoughts about this?



x Leia

Leia_Stephens

I am not sure whether to save more for my nephew and less for myself, or vice versa .

Does anyone have any advice or thoughts about this?

x Leia

dunstonh

I would save for yourself. Especially as you have only recently come out of a debt situation. Your aim ought to be building up 6-12 months capital short term.

I bet your retirement planning or longer term savings isnt up to scratch (assumption but a fair bet).

Joe_Bloggs

Your Nephew has a tax allowance. They maybe able to save money, more tax efficiently, than you. They can even get tax isas just like you. Tell the sprog to get a paper round if they want to appreciate hard graft rewarded by money. Money for nothing does not encourage constructive enterprise, in my view.
J_B. (My niece missed the Child Savings trust fund by three months. So much for equality !)

Viz_2

Only save what you can afford.

When are you planning to use or give the savings to your nephew ? I'm sure any money would be a nice surprise.

I currently save £50 p/m ( since birth ) for my daughter, she is 3 and a half years old.

Joe_Bloggs

@Viz
Where do you save this money ? Do you know if you are taxed upon the interest.
Rgards J_B.

cheerfulcat

I would say save entirely for yourself. You can always give your nephew a gift from your savings, if you are so inclined.

kingshir

cheerfulcat wrote:

I would say save entirely for yourself. You can always give your nephew a gift from your savings, if you are so inclined.

I agree with cheerfulcat, save for yourself and give nice birthday and Xmas presies and an Easter Egg!

Leia_Stephens

Thank you all for your advice .

I could always save the whole £125 in one place - earmarking £25 to £50 for my nephew - and hopefully maximise the interest I would earn by doing it this way :j .

x Leia