Son's first full time wage packet-advice please

Nevsy51

Just after a bit of advice really.
Our 18 year old son has been lucky enough to have been offered and accepted a full time job after leaving college after a year, with a firm he has worked part time for since he was 15.-Not massive wages as it is in retail but these days a full time job is a full time job
He has had his first full time wage packet,and I would like to try and advise him about putting some aside each month before he gets too used to the extra money he has.
When I met his mum when we were 16 we were both working full time 28 years ago and would bung a tenner each into C&G deposit account every Friday and a few quid to the Pearl assurance until we were 21 which after a few years enabled us to eventually put a deposit on a house in a housing society which we then bought-Thats what we did.
Things have changed now and I have no real idea of Isas etc or the best way he could put some spare cash aside each month to grow a pot for the future.
He pays his way with us for lodge money each month and I was thinking if he could stick say £75 every four weeks away it would start to stand him in good stead for the future and he wouldnt miss it,but I dont really know what to advise him to do with this money for the best return and possibly be accesible in an emergency if he needs it.

Any advice would be much appreciated before I have a chat with him about it before he starts coming home with 5 xbox games each month and sees them as essentials with his new found wealth!:)

CLAPTON

what he should/can saves depends upon his income and how much you charge him for lodgings and his essential costs (getting to work /lunches/ clothes)

but maybe start at 25% of his income

best to start putting it in the best interest rate ISA as it's tax free.

mum2one

Def get him to get the lodgeing money and savings sorted out at payday, and then try to get him to balance the remainder over 4 weeks, when I got paid monthly, it was a pain in the last week.

One other thought if you don't think he's going to save - say get him to open an Isa or savings account, and just say leave the book with the other books etc....... method in my madness, just thinking if it looks like he isn't going to save, then add extra to the keep even if its £25 or £50 then put that in the book.

Nevsy51

Don't get me wrong, I am not going to be telling him how much he should save or try to dictate to him-it is his money at the end of the day,but when I was 16 and started a full time job I was glad of some advice which enabled us to have a little bit behind us 5 years down the line.
He pays us every 4 weeks when he gets paid- I had thought of upping his keep and putting it away until he is 21-but I dont want to do that-Its his money his choice what he does with it. More a case of what would be the best way to stow away £75 a month-some in a savings account some in an isa etc-He will listen, thank you for the advice so far.
Sorry MUM2One-I didnt make it clear-we all get paid 4 weekly.

Wintermute

My advise is get him to open an ISA (I think Santander are the best for that just now) straight away and if he managed to fill that get him to open a savings account. I'm 25 and due to various reasons I only really got into steady full time employment about 3 and a half years ago, one of the first things I done was open a savings account. I only just opened an ISA and I regret not doing it sooner as I've probably missed out in a few hundred pounds worth of interest :eek:

Three and a half years later, three expensive holidays paying for both me and my girlfriend (Spain (3 *), Spain (4 *) and Egypt (5 *)) and digging into my savings every so often to avoid the use of my overdraft has got me over half my gross annual salary in savings (about £1.5k over). My ISA is full and I have plenty in my savings account to top it up next year and pay for next years holiday. I still live with my parents so I have very little in the way of savings.

Let him know that saving doesn't need to be boring, I'm glad I have about enough for a deposit for a flat when I get a slightly higher salary, I've spent over £2000 on tattoos in the past 2 years or so, I don't want to think about how much I've spent on booze or night outs, I have a few hundred pounds worth of single malts in my cupboard, countless gadgets and a lifestyle I'm reasonably happy with. I know plenty of people my age or older who have worked for longer than me, but have nothing at all to show for it other than lots of great stories about how drunk they got last weekend etc.

GemJar_2

Why not put his rent up by 30quid or so a month in a few months time and put the money away yourself then 'suprise' him with it on his 21st birthday? It won't be loads of money but it will show him how easy it is to save?

Wintermute

GemJar wrote: »

Why not put his rent up by 30quid or so a month in a few months time and put the money away yourself then 'suprise' him with it on his 21st birthday? It won't be loads of money but it will show him how easy it is to save?

I really like that idea, if you put it in a decent savings account he'd have somewhere in the region of £5,000 by the time he's 21 (assuming he doesn't move out first). £30 a month really isn't very much when you're on a full time salary even at minimum wage while living with your parents. I'd be shocked if my parent gave me £5k as part of my 21st birthday present, at that age and after working for 3 years he'll hopefully have learnt the value of the pound and not blow it on something stupid.

evenasus

Quite a few years ago, I used to put the whole amount of my son's 'board' money in a savings account.
When the time came for him to move out and buy a house, there was enough for a deposit. This of course came as a nice surprise for him.

Acremead

Wintermute wrote: »

My advise is get him to open an ISA (I think Santander are the best for that just now)

Based on personal experience I'd think twice before doing business with Santander. Better to take a slightly lower rate with an institution that you can rely on than go for the extra tiny percentage and have problems. Santander seem to be having problems integrating all the new businesses they are buying, and at the same time they are pulling in new customers with headline grabbing rates. Seems to be a recipe for disaster as they don't seem to be able to service so much new business at the same time as pulling together all the businesses they are buying up...

mum2one

Nevsy51 wrote: »

Don't get me wrong, I am not going to be telling him how much he should save or try to dictate to him-it is his money at the end of the day,but when I was 16 and started a full time job I was glad of some advice which enabled us to have a little bit behind us 5 years down the line.
He pays us every 4 weeks when he gets paid- I had thought of upping his keep and putting it away until he is 21-but I dont want to do that-Its his money his choice what he does with it. More a case of what would be the best way to stow away £75 a month-some in a savings account some in an isa etc-He will listen, thank you for the advice so far.
Sorry MUM2One-I didnt make it clear-we all get paid 4 weekly.

apologies from me as well, the other posters put it better, up the board save it for him as a surprise.

I know its completley different my dd neary 8, but from day 1 - saved loose change, and banked it - set as childs account, the plan is to give it her on her 18th as a headstart in life. xx

loracan1

But keeping money aside in secret and surprising him isn't giving him advice about saving...

Show him the savings calculator on here. That'll give him an idea of how much he could save over time. Encourage him to set aside a certain percentage in an account that pays interest.