Are you saving for your child?

Mimi_Arc_en_ciel

Sorry to be "nosey" - I just wondered how much you intended to save for your children?

My aim was to give each of my girls £10k (not in a lump sum!!!) when they became adults to do what they want with - I'd hope for a car / travel / something sensible but I also appreciate it's theirs to do with as they please.

How much do you plan on giving your child(ren) ?

In_For_A_Penny_2

I am investing in a S&S ISA in my name so that when they reach 18 I still have control over the money (you never quite know what they will be like as teenagers!). I'm not sure how much of this I will ultimately "give" to them but the plan is for them to use it for university fees/house deposit/whatever.

I also have a JISA (cash) in their name for gifts from family etc over the years and is therefore rightfully theirs to do with as they please.

MadMat

Both my sons will receive around 5k on their 18th birthdays, hopefully it'll get used for “start of adult life“ type expenses, learning to drive, first car, work wardrobe etc.

Made up of around 3k from me, and the rest from a regular savings account my parents set up for them.

Oldest has both cash and s/s ISAs, youngest has a CTF till next April when I plan to reevaluate his accounts

Might not be a huge amount, but it's more than I got at 18!

Mat

colsten

Don't forget to factor inflation of the amounts you are aiming for. If you opt for cash savings rather than investments, you might have trouble keeping up with inflation.

quidsy

My son will get projected approx 10k on his 18th from trust fund to be spent as he wants, car, round the worlder, hookers (jk) & we have projected around £35k saved by the time he reaches university age. That is being saved in our names though & if he doesn't want to spend it on a uni education then it will be reinvested until he wants to buy property at which point we will give it over. At no point will that money be used for frivolities.

MadMat

colsten wrote: »

Don't forget to factor inflation of the amounts you are aiming for. If you opt for cash savings rather than investments, you might have trouble keeping up with inflation.

Oldest is 15 this month, his monthly savings are being split 50:50 between a cash ISA paying 3% and vanguard lifestyle 60 inside a s/s ISA, mainly in The hope that he'll continue saving after age 18 as he has visibility of both accounts to watch them grow!

Youngest is 11 and all the money I'm saving for him is going into addition contributions to his CTF. I plan to switch him to the same lifestyle 60 in April when the rules change. But given the much longer timescale involved will probably put all his monthly amount into the s/s ISA

Mat

Reaper

I split it 3 ways. He has a CTF (soon to become a Junior ISA) which he gets at 18.

Next for some money gifted from relatives he has a Bare Trust with Baillie Gifford who (controversially) won't pay out when he become an adult until we parents, who are the trustees, permit it. So what he does with his CTF money will determine when he gets the Bare Trust payout.

Finally we have a child pension for the long term. Sounds daft but:
1) The earlier you start the less it costs
2) He doesn't have to wait until he retires to benefit. He will benefit from having to put less in himself when he starts work and money is usually tight.
3) The investment gets topped up with tax relief even when the child pays no tax.

puk999

Reaper wrote: »

Finally we have a child pension for the long term. Sounds daft but:
1) The earlier you start the less it costs
2) He doesn't have to wait until he retires to benefit. He will benefit from having to put less in himself when he starts work and money is usually tight.
3) The investment gets topped up with tax relief even when the child pays no tax.

I've been thinking about child pension for my two also. They have CTFs which their granny contributes to. It's not a lot but I don't want them to have lots of money at 18 that they can do what they want with. I am hoping to be in a position to help them out when they get to university/driving/etc but the money is not officially ringfenced in their name, just in my and my partner's ISAs.

Who do you use for the child pension provider?

atush

I saved into an investment trust savings plan for my 3 boys. Not to give them a Lump sum, but to pay for university expenses.

they all 3 went, not 100% sure what I would have done had one not gone. Maybe given them half to pay for a car for work (although they all 3 share one now so they do have one.

Otherwise, I would have kept the money and gifted it later in life like for a house deposit. cant say I would have given them the cash and just 'hoped' they would use it for something sensible.

Reaper

puk999 wrote: »

I've been thinking about child pension for my two also.... Who do you use for the child pension provider?

Currently a SIPP with YouInvest, but now all the companies have changed their charging structures I probably ought to look around and see if that's still the best choice.

somethingcorporate

We save child benefit for our little one (even though it gets clawed back via tax return) and put in odds and ends when we can - we've saved around £2.2k for our 19 month old so far.

We also put aside £50 a month for our niece.

Not sure what we plan to do with it or at what age but just wanted to make sure we have something for when they decide they want to go to uni or travel or for their first house.