Saving for your children

Alikay

We didn't save any money for our kids in their own names: They had accounts for saving their pocket money, Christmas and birthday gifts but we didn't save for them specifically.

Our main savings have been through DH's company share scheme, and any extra cash has been used to overpay the mortgage. We sell some of the tax-free shares when the price is good and we've used this to pay DD's wedding costs and help DS1 set up his business and his subsequent move to London. DS2 will be helped as and when we see fit. They're all so different as are their needs.

I know it may sound harsh, but if we give the money, we want to know where it gets spent and whilst I can see why parents help with uni costs, I'd be pretty hacked off if our savings was being used to help fund 3 lectures a week and 5 nights partying.

ameliarate

I saved for my daughter in an account in her own name. Money she got for Christmas and birthdays would go in there when she was very young and also when she was older if she didn't particularly want anything.

Some kids are great when they reach 18 they use the money wisely, like my daughter, some are not (I wasn't ). I guess you have to take that chance but if you have brought them up to respect money and the value of working/saving, chances are they will be ok.

chickaroonee

Thanks everyone, I definitely agree with those that are saying how saving even a small amount will add up. I definitely want to do it from day one (if we can!), even if it's just £10 a month it'll add up over the years.

flutterbyuk25

My parents and grandparents saved a few thousand £'s for me when I was a kid but I was never told about it. When I was about to buy my first car (age 21) in order for me to get to my new job, my grandparents told me that they had the money saved for me and they were buying the car for me. The money (£5000) was held in Premium Bonds and I had no clue it existed. They have done similar things for all 5 grandchildren. The money has always gone towards big, important things like cars, deposits for house purchase, furniture, travel etc. I did Camp America last year and my grandparents gave me a further £1000 so that I could travel afterwards. I got to see so much more of the States than I would ever have been able to. They wanted me to enjoy this money which was to be my inheritance whilst they were still around to see me enjoy. They loved having postcards from me from every city I went too. It was a wonderful gift, made more poignant by the fact that my Grandad passed away this year.

Likewise my parents have saved over the years and have given me money towards big things like when I moved into my flat they gave me £700 to buy bits and bobs to furnish it.

x

Indie_Kid

Are you able to open a savings account in your name, and when the child turns 16/18/21, put it in their name?

skintchick

WE save in my name. I'd rather pay the tax on it and know we can use it for her if we need it (like a family emergency) and we cna choose when to give it to her.

I just save the CB and CTC we get, which is £40 a week, so it's not loads but it will add up and we don't miss it.

moggitymog

we just have dd age 7, we save £100 per month into an ISA (in my name), and the plan is when she is sensible enough the money will be split 50:50 and our half will hopefully pay the last of the mortgage off, she also has a savings account for xmas money etc which she can use when she needs something

Lynn11

My DD who is 2 has a child trust fund account which I put a bit more money in it but will not be putting in anymore as she will get access to this at 18 and could blow the money. I have opened another bank account which is in her name but I am the trustee and £20 per month goes into this account from the child benefit money I receive and I will decide when to give this money to her (probably at 21) but also I can access this at anytime if we are struggling moneywise and she needs clothes etc - hope not to do this but we have the option. DD knows that she saves her pennies in her moneybank on the windowcill for holidays.

ManOnTheMoon

My kids have a few bank accounts each.

A % of all Child benefits and my wages go into their accounts and have done since I started earning.

16yo now gets nothing, but has p/t job. I still save for her.

I trust them not to touch it and all cards etc are locked away. They know if they touched it how upset I would be, so they wouldn't.

It's an individual thing on how you do it, but it's nice to hear people do save for their children, as many don't.

starnac

we have a daughter who's currently 2 years old. we have her CTF which we put any money she gets off family in and a bit ourselves if we have anything spare but we also have an account in her name which we put money into. the account is in her name but we have control over it until she is 16. she won't know about this account until she is 16 and by then i hope that i would have taught her how to be sensible with money the same way my mum taught me.

if you teach your child how to budget and save from a young age then i honestly believe that they will be sensible with money when they grow up.