Saving for your kids

gingin_2

We don't.

We prefer to sort out our own finances whilst the children are younger so that we have less financial burden and can help them out at the time, when they are older.

Interest rates are so low and our mortgage rate is higher than what they would get in the bank as a savings rate so we are trying to pay that off as fast as we can.

I'd never* just give my children a lump of money over £250 unless it was for something specific. I was given around £5k at 18 and it disappeared on shopping and partying.

*Just to add: rethinking, I should never say never

Mojisola

Claree__x wrote: »

She's 12 weeks old, I doubt he's even considered it!

Well, you've made the decision to open an account and have started putting money into it so is it so strange to think the two of you might have discussed the ramifications?

fluffymuffy

I started pensions for mine when they were little. They can have it when they retire.

NAR

OP I think you are very wise building up a nest egg for your child.

Considering the financial issues young ones face today, in 18/21 years time goodness knows how good/bad things will be.

Hopefully during the teen years you will be able to pass on some financial responsibility to your DD, so that she doesn't squander her investment.

TeamLowe

I think we will save for our child but in our own names as I'd rather save for a purpose then just say 'here you go, here's £2k' go do what you'd like' as to me the money would lose its 'value' - it's not earned by them nor does it represent anything.

I'd rather save with the intention of the money being there to help them along in life with what they want to achieve - ie first car, university or setting up a business, help towards their first home, wedding of their dreams etc I hear kids get really expensive when they get to early adulthood lol

I would also give cash gifts at significant birthdays - I was given £500 for 18th and £1000 for 21st, so I envisage similar amounts for my child/ren if I'm able

becca0417

My parents did this for me and we plan to do it for our baby. All birthday/Christmas/special occasion money will go in there and we plan to put child benefit in the account too.

I got given my account at 18 (had been in mum's name previously) and spent it on a deposit for a brand new car which helped me out no end, I still have it now and am about to part-ex it for a larger car. I'd hope our child spends it sensibly but if they don't, that's their tough luck!

Claree__x

Mojisola wrote: »

Well, you've made the decision to open an account and have started putting money into it so is it so strange to think the two of you might have discussed the ramifications?

We know we want to save for her and give her the money when she's ready for it. I know legally it is hers when she turns 18 but we're hoping to raise her in such a way that she understands the value of money so doesn't waste it. We've never sat down and thought "what if she wastes it", no.

stejobeth

We did this when our daughter was born and put £25 a month into her account plus any Birthday and Christmas money. She got a part time job last year and set up a direct debit and pays almost all of her wages into this account each month.

She used the money to buy herself a car and passed her driving test 2 weeks ago.

dsab

We are putting the Child Benefit into the Kids Accounts, and also any bigger amounts they may get while they are still small.

These Accounts will be completely unknown to them, and we will not tell them of these Accounts until we are ready to hand over the money to them to spend on a worthwhile thing, be it a gap year traveling, University costs or maybe Deposit for House (fully depends on the kids character in the future).

They are still small, and when they are a bit older we will open a separate Savings Account with them for the day to day savings of Birthday Monday, XMAS money, part time jobs, pocket money etc., and encourage them to save and to see this as part of their future.

natbags

we put child benefit and any larger sums we can manage into an account (I'm trustee for him) and then move about to get the best rate - this will hopefully help for any choices later on in life Uni Fees, Deposit for a house, Car maybe?
Any smaller amounts (birthdays etc) go into another account that he uses to buy things he wants, by saving up - I think its good education to learn that. He's 12, by the way