What do you do with your child benefit?

Broken_hearted

Its going into the pot for bills at the moment but as from feb its being used for the mortgage. Once I'm debt free in 2008, they can start building up their savings again. For now we just want to be comfortable day to day.

milliejon

I'm in the same position Broken Hearted. I want this debt paid off as soon as possible and this money helps. When I'm in a better position, I'm hoping that I be able to save this for the kids for nice holidays and days out etc. They're not missing these things at the moment as they're so young.

Ali-OK - I don't think we have anything to say about where our kids spend their trust fund money. When they hit 18 they get access to it and can use it as they want. We can advise them but you never know...

Ali-OK

milliejon wrote:

Ali-OK - I don't think we have anything to say about where our kids spend their trust fund money. When they hit 18 they get access to it and can use it as they want. We can advise them but you never know...

Ahh...I didn't realise that - I'm now glad DS was born before they came out!

That's worrying too though - I know of someone who's son emptied his bank account of over £3k at 13...designer clothes, gadgets, etc. The parents were gutted as they'd saved since he was born, that's why I did the bond and I am tempted to put a good chunk of his bank account money in a new account that is In Trust, so it avoids that problem.

System

I don't put anything in the government trust fund for that reason either....dd has two other accounts for her savings. I think then we can "supervise" her spending. If it happens that she needs money earlier for education or school trips then I would feel happy dipping into that if we couldn't afford it any other way, better that then her not being able to go .

immoral_angeluk

Our girls are going to have it rammed into them from an early age that money is to be used wisely and not on crap so that hopefully when they get the money when they're 18 they don't use it for a massive week long bender....

I recieved £2000 inheritance from a grandma I'd never met when I was 18. the only thing I have to show for it is a £200 stereo system! The rest was wasted on crap!

loneranger

My 'babies' are grown up and working now but when they were little the CB used to be added to the housekeeping but when they were aged 10 and upwards I used to let them take it in turns each month to have the total CB and go shopping (with me) for clothes, shoes sports kit etc). It was interesting to see how they chose things, one would buy only a few quality items the other would buy loads of cheapie things and have money left over! They are still like that in adult life.

raq

Mrs_Sparkle wrote:

As the title says really- I'm interested to hear what other people do with theirs. I've always said I'll pay it into a trust fund for the baby but at £69 a month (I think) it could be an extra £828 a year off my loan.

Our baby is due in 6 weeks and we're not planning on spending a lot more than we do now. We've got "real" nappies and have stockpiled clothes and baby toiletries.

So, is it wrong not to use child benefit directly for the child?

I don't know of anyone who pays into a separate account. We have ours to go towards the weekly food/utility bills. Needs much at the end of the day

Good luck with the baby

Spendless

Mrs_Sparkle wrote:

Hi Lenny, we won't be entitled to tax credits as we earn too much.

No wish to pry into your earnings, but are you aware you can earn a higher amount to qualify for tax credits for babys 1st year. (IIRC about 66K-68K, rather than the usual 56k) www.entitledto.co.uk

The CTF is paid to children born on or after 1st Sept 2002, so I have one child who qualifies and one who doesn't. You can't take the money out once put in and it becomes the childs to spend as they wish once they reach 18. For this reason I haven't added to my daughters. One too many teenagers in our family who would spend the money *unwisely*;) to make me risk it.

Mrs_Sparkle

Spendless wrote:

No wish to pry into your earnings, but are you aware you can earn a higher amount to qualify for tax credits for babys 1st year. (IIRC about 66K-68K, rather than the usual 56k) www.entitledto.co.uk

Yes thanks. Our joint earnings are £90K+ so we don't qualify. Thanks anyway!

System

Mrs_Sparkle wrote:

Hi Lenny, we won't be entitled to tax credits as we earn too much.

How's your baby son doing? Is it how you imagined?

I didnt think we woul be with our combined income being approx 34K. I did a basic check and it would appear that we are entitled to about 500 a year. Gonna apply anyway!

Lenny