Investing for a child's future

mrbrown

Hi,
Ive just become an Uncle. Im thinking about what to give the new parents. I remember reading an article a couple of years ago about investing for a child so that when they get to 18 they hopefully have a healthy amount of money that has grown in that time.

I dont have much money, but Id like to get the ball rolling, and maybe the parent can continue with it and paying in regular amounts (which I could top up for birthdays etc...).

What options do I have? Child Trusts, Junior ISAs etc? Does anyone know of a 'beginners guide' article on how to invest in the financial future for a child - maybe with amounts to pay in and possible returns on that investment?
Thanks

atush

Well, Junior ISA should be available, but they can only have one so you'd need to discuss this with the parents.

But I must stress, that when saving for periods of 10-18 years or more, that you should be looking to save into equities instead of cash. They shoudl outperform cash (and unlike cash beat inflation) over such a period.

If you want to save seperately fromt he parents, and can save 20-50 per month, I'd look at investment trust savings plans direct from an IT company. Low costs, and pound coast averaging.

This is what I did for my 3 boys, and one godchild.

xylophone

You could contribute to a JISA set up for the child by his parents.
You could be bare Trustee on an account set up by you for the child.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672
http://www.hmrc.gov.uk/tdsi/children.htm

See also thread https://forums.moneysavingexpert.com/discussion/comment/53460205#Comment_53460205

mrbrown

Thank you, Ill have a look at those links. At the moment Im thinking a J S&S ISA, but I may change my mind after Ive read up on it.

atush

Well you might not have a say, if the parents aren't very smart and go for cash Jisa. So learn and discuss with them.

If they won't budge, open your own Re: acct with an investment trust.

jimjames

This may be of interest

http://www.fandc.com/new/it/Default.aspx?id=78401

It is one of the schemes we use for our kids

u751904

I've got a CTF with F&C, its done pretty well. I went for a high(er) risk equities fund. i also took out a pension for my daughter with standard life. I put in £30 pm. The pension calculator for kids is crazy. Makes you wish that everyone had a pension from birth. Sad but true.