Need advice on investment/savings for teen

alicewilliams

Hiya everyone,

One of my kids has received a small lump sum payout due to an accident/negligence.

I have been given the responsibility to manage her money until she is 18, but I don't know what I should do.

One option I'm thinking of, is to place it in long-term (5 years or more) investment, such as shares, but I do worry of the risks.

What else can I do and since the money is for her, will it affect my ESA benefits?

Thank you

bigadaj

alicewilliams wrote: »

Hiya everyone,

One of my kids has received a small lump sum payout due to an accident/negligence.

I have been given the responsibility to manage her money until she is 18, but I don't know what I should do.

One option I'm thinking of, is to place it in long-term (5 years or more) investment, such as shares, but I do worry of the risks.

What else can I do and since the money is for her, will it affect my ESA benefits?

Thank you

What sort of sum are you talking about. It may well be worth speaking to an ifa if you are inexperienced and is a large sum, also takes responsibility from you and provides evidence that you are being responsible. Look on unbiased .com and talk to two or three before deciding and don't be afraid to question them on their costs in detail.

alicewilliams

Thank you for your reply. She got £1900. I'm hoping someone on here can advise.

bigadaj

alicewilliams wrote: »

Thank you for your reply. She got £1900. I'm hoping someone on here can advise.

If you post on the benefits board then you will get more advice on impacts on benefits.

There are risk in shares and they go up and down along the way. Have a look at investment trusts as they are frequently dependable in terms of not being too volatile.

It's a relatively small sum so investing will be better than cash, but compounding at a few per cent a year won't make this a million anytime soon. Probably best to do some research and come back here when you have some firmer ideas, a junior isa would protect it but still needs thought as to where you are saving or investing.

alicewilliams

thanks bigadaj,

I will now post on benefits section too.

I would like to invest it preferably where I don't get charged a ridiculous amount for keeping the money there. The problem with share companies is that if you don't trade a lot, they charge you i believe every 3 - 6 months?

Really a high-interest account would be good.

alicewilliams

Could someone please tell me if there is a share-dealing account, where they don't charge you for inactivity?