Children's savings

LJD1_2

We've done this as we were using the child allowance to pay into a saving scheme for them. However, we could no longer afford that so we cashed it in, £1000, in total. As soon as our debts are paid the child allowance will be saved for them and they'll end up with a lot more money and less stressed parents. If you think you'll pay it back i'd go for it.

SunderlandBlackCat

I'd say with your debt interest being so high & theirs being so low use it to pay off your debt now & then when you get debt free find them an account with a much better interest rate until thier savings have caught up & then a bit more to make up.

This Childrens Account with the Halifax pays 10% for a year - there are probably other accounts that can beat that if you shop around.

abitrubbish

I have been known to "borrow" from my kids accounts to tide me over or prevent me from going over my overdraft limit. At the end of the day the financial benefit of doing so is far more than the interest they would be getting. As long as you make sure you keep a note of how much you owe them and make sure you pay it back when you can I wouldn't hesitate.

mrsspendalot

I would definitely repay it once our debts are clear. I think with them being so young we have got plenty of time to get the money back in their accounts. With what we are paying out each month in debt repayments we could repay their money in a month easily once debt free.

Thanks for all the replies. I think I will talk it over with hubby when he comes in, and then if he also thinks it's a good move I will sort it out and clear some debts.

azjh77

I have always looked on my child benefit/tax credit as income and haven't given it to the kids (I know some who do)

I have been pinching their birthday money for years to buy food..not proud of it, but they haven't missed it.

This year my eldest is 8 so from now on 'income' works like this:-


A is for account - 1/3 goes into bank towards bills - we are skint and yes i'm evil
B is for box (money) - 1/3 to spend as she likes
C is for certs - 1/3 she is saving up and buying childrens savings certificates (even has her own green portfolio to keep it all in.

grastgirl

Money was tight for my parents when I was a kid, they often dipped into my savings to pay for shoes and things (not quite the same thing I know) and then paid me back, with me none the wiser. Once I was old enough (perhaps your 7 year old would also be), they used to ask me to loan it to them with interest (explained as we'll give you another £x for doing it), which I happily did. At least one of the times it was to cover a mortgage payment on a house they were doing up.

I think I wouldn't have any qualms about doing it, although I would ask the 7 year old, if he'll understand. Could be a good way of introducing him to money that would help him be careful with money in the future (ie show him how banks make money by charging interest). Maybe you could give him the pleasure of cutting up one of the cards, if you haven't already done it.

Perhaps you could consider paying off the £201 and most of the £68, then you pay off one now and should be able to pay off the remainder of the £19 next month, so you get a psychological boost both months. This way may not be the most efficient moneywise, I'm sure paying the money off whichever the snowball says should be better, but of course it depends which you would prefer.

If you do do it, make sure you pay it back.

Grast

mrsspendalot

The cards are not cut up but they are in a sealed envlope in a draw

Once clear, I will open the envelope and chop ... this is what we promised we would do to the cards as a a reward each time one was clear.

My 7 yr old has quite a good grasp of money and does enjoy saving and spending her own pocket money. We used to also put all the 1p, 2p and 5p in the kids money boxes, but with their consent we have decided to fill a large roses jar instead and this is 2/3 full now. I'm not sure how much will be in it, but my parents did this at Xmas with a full jar and there was about £45 in it.

mrsspendalot

Thinking about it, my parents must have done the same with our savings as I remember getting my savings account book on my 18th and there were quite a few withdrawals in it from years ago. I guess when things are tight you have to sort the immediate problems. Thanks again everyone.

bobbadog

My mum used our Family Allowance on bills and food etc (we were a single parent family and she was too scared to chase my dad for maintenance, so very tight for many years)... but at Chistmas she'd give me the family allowance money to spend in the sales! Always loved going to Toys R Us and buying books and toys.

But anyway, yes. I'd 100% definitely borrow the savings, and that 10% interest account sounds amazing for them - repay when they're older and you're more financially stable. Best of luck x

ddraiggoch_2

mrsspendalot wrote: »

My credit card debts are all little bits ... I have £68 on one, £201 on another, £278 on another, £110 on another, etc so £250 would clear one completely. So it would get rid of one complete debt (or 2 if I used it to pay the £110 and £68 debts) and then I could close the accounts down and forget all about them.

My kids are 7, 3 and 1 (next week) so there is plenty of time to make the money back up and the 2 youngest have the child trust fund as well. I just can't decide. It isn't money that we have saved for them, it is money that has been given to them by relatives, which is why I just aren't sure what to do

Fast Forward 10 years...You catch one of them taking £250 out of your purse "But mum I would have paid it back later!".......wallop the thieving little b***er and ground them for a month.