Saving for a child? (Not comfortable handing over at 18)

xylophone

Miles16v wrote: »

Rather than start a new thread on a similar topic, my first was born 11 days ago and has been accumulating cash gifts.

Whats the best account to go for for interest rates?

Do keep any account holding money that you give your child separate from any holding money given by other relatives. (Except Junior ISA and any Tax-free products)


Presumably he is eligible for a Junior Isa http://www.moneysavingexpert.com/savings/junior-isa

http://www.moneysavingexpert.com/savings/child-savings-tax-free?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar
See also http://www.direct.gov.uk/en/MoneyTax...es/DG_10014128
http://www.hmrc.gov.uk/tdsi/children.htm - and note what happens when a child turns 16.
http://www.hmrc.gov.uk/trusts/types/bare.htm

You can also usually open fixed rate savings bonds for your child -" Mr and Mrs X re Baby X" http://www.moneysupermarket.com/savings/fixed-rate-bonds/
http://www.thisismoney.co.uk/money/saving/article-1621507/Best-saving-rates-Fixed-rate-bonds--accounts.html
I think Hargreaves Lansdown offer a Trust arrangement for parents etc.https://www.hl.co.uk/free-guides/inv...-for-children2, also a junior Isa.

property.advert

The simple fact is that there isn't an 18 year old capable of dealing with any real amount of money. In fact, if their first thought is not to go on a booze up abroad for the summer followed by a rash car purchase then there is something wrong with them ! The two ideals are hardly compatible.

You need to either not tell them or keep it in your name and retain control that way.

atush

I actually have 2 such boys in my house. One has been operating his own small business and saves is money and spashes out only occasionally. He is 17. The other, got all his cash money (2400) at age 18 and it lasted him 2 years at Uni. He gets better all the time-I am gving him the account I have been saivng into for him next month when he is 21.

I only keep them from having access as I have one who i suspect is a spendthrift ;-)

In any case, none of mine can go to Ibiza unless I hand over the passports lol.

the 20 yr old went to Almeria in Nov to visit a friend, on money he earned working this summer. I find they spend money more responsibly if they have to go thru the hard work of earning it.

Not all young people are fe*less (using the american use of this word ;-)

Blackpool_Saver

If I could go back and start again I would do an education plan, private school and uni plan

ses6jwg

property.advert wrote: »

The simple fact is that there isn't an 18 year old capable of dealing with any real amount of money. In fact, if their first thought is not to go on a booze up abroad for the summer followed by a rash car purchase then there is something wrong with them ! The two ideals are hardly compatible.

You need to either not tell them or keep it in your name and retain control that way.

I'm sorry but that's bullpoop.

Most yes, all, certainly not.

My parents gave control of a few K at 18 and I managed it turn it into over 30k via stocks and shares and cash ISAs

atush

Perhaps Property Ads parents weren't as strict as me and mine?

Children are a combination of what you make them (good or bad) and what is there to begin with.

We have the task of molding them, and if you aren't up to the task (very daunting) then don't do it.

SailorSam

We have money that we've got in a saving scheme for my young nieces. It's not so much the girls blowing it i'm worried about but their deadbeat dad. I wonder will they be strong enough to say No, when he'll want to 'borrow' the money for a new car.

elsien

Just a quick thought about earmarking an isa for junior, what happens if it's in yours/your wifes name and you end up splitting up?
This has just happened with a relative who'd put money in his wife's name with the intention of using for the kids education and now they're divorcing it's ended up in the general assets pot rather than for its intended purpose.
Just a thought.

Llyllyll

This is a very timely thread as I am interested in this also.

Knowing nothing about trusts but having just briefly looked at HMRC's website, would a discretionary trust not be suitable?

Doom_and_Gloom

property.advert wrote: »

The simple fact is that there isn't an 18 year old capable of dealing with any real amount of money. In fact, if their first thought is not to go on a booze up abroad for the summer followed by a rash car purchase then there is something wrong with them ! The two ideals are hardly compatible.

You need to either not tell them or keep it in your name and retain control that way.

Not true at all. When I was nearly 17 I had moved into a flatshare and I was budgeting better than the nearly 20 year olds I was living with at the time .
My parents saved for me all my life and I had quite a few k's when I was 18 due to that. I still have all of the money my parents saved for me and I add to it every month and have been since they stopped adding to it when I turned 21 as I didn't cash it at 18 - I am now 22. My parents told me at a young age they were saving that money and I saw the statements every year when they came.

There was and is nothing wrong with me. I was simply taught the value of money!

I would have been very offended if my parents had thought to hide that money from me.