Monthly savings for a newborn?

j88kln

We have recently had our first child and would like to set up some savings for him.

I am looking at depositing between £50 - £100 a month and I want him to be able to withdraw the money on his 18th birthday.

This account would also be used for relatives to deposit money on his birthday and christmas.

I am unsure what account to go for and that is my reason for posting in here.

any help is much appreciated

Andy

Drp8713

I would either go for a Junior Stocks & Shares ISA or a low cost Investment Trust saving plan e.g. http://www.bailliegifford.com/individual-investor/how-to-invest/investing-for-children.aspx

jimjames

If you WANT him to be able to have the money on his 18th then a JISA is suitable.

However many people don't want that to be automatic in case they aren't sensible with money at that age.

atush

Drp8713 wrote: »

I would either go for a Junior Stocks & Shares ISA or a low cost Investment Trust saving plan e.g. http://www.bailliegifford.com/individual-investor/how-to-invest/investing-for-children.aspx

This would have been exactly my recommendation. and having done so and now having 3 boys at university it has turned out very well for them.

Kendall80

jimjames wrote: »

If you WANT him to be able to have the money on his 18th then a JISA is suitable.

However many people don't want that to be automatic in case they aren't sensible with money at that age.

We have JISA's for each of our boys but with a relatively small amount which should give them £4000-£4500 on their 18th.


The main bulk of our child related savings is going on within my wifes S&S ISA which we were not using. This 'should' amount to 25k based on current monthly savings amounts and will crucially remain under our control.


Hopefully, this way (and of course with good parenting ) we can reduce the likelihood/severity of immature decision making. 18 year olds maybe regarded as adults but personally speaking I was neither emotionally mature enough nor financially experienced enough to make important future decisions at that age.

Archi_Bald

jimjames wrote: »

If you WANT him to be able to have the money on his 18th then a JISA is suitable.

However many people don't want that to be automatic in case they aren't sensible with money at that age.

Basically any 18 year old is allowed to vote , can get married, must pay tax, can die in Service for their country, can serve on a Jury, can stand for local and national and EU elections, can make a will, can be sent to prison if found guilty, can purchase an airgun and ammunition, can decide to carry an organ donor card, can buy cigarettes, alcohol, fireworks, can watch A rated films, can get a licence to drive lorries between 3,500kg and 7,500kg, can open current accounts, can buy a house or car or whatever on credit (subject to status, obviously), can buy alcohol in shops and restaurants, etc etc etc etc - in short, unless you have been granted POA for them for very sad reasons they do not need your permission for anything and they are considered adults, with the same rights that their old geezer parents have.

In the face of all this, you can perhaps argue that parents are overloaded and just don't have enough time to teach their children how to be responsible with money . Though it would be fair to ask why you would consider your children to be ready for adult life when they can't even handle money, and where you would draw the line on their financial readiness? 21? 25? 47? 69? Other?

Mistermeaner

Archi_Bald wrote: »

Basically any 18 year old is allowed to vote , can get married, must pay tax, can die in Service for their country, can serve on a Jury, can stand for local and national and EU elections, can make a will, can be sent to prison if found guilty, can purchase an airgun and ammunition, can decide to carry an organ donor card, can buy cigarettes, alcohol, fireworks, can watch A rated films, can get a licence to drive lorries between 3,500kg and 7,500kg, can open current accounts, can buy a house or car or whatever on credit (subject to status, obviously), can buy alcohol in shops and restaurants, etc etc etc etc - in short, unless you have been granted POA for them for very sad reasons they do not need your permission for anything and they are considered adults, with the same rights that their old geezer parents have.

In the face of all this, you can perhaps argue that parents are overloaded and just don't have enough time to teach their children how to be responsible with money . Though it would be fair to ask why you would consider your children to be ready for adult life when they can't even handle money, and where you would draw the line on their financial readiness? 21? 25? 47? 69? Other?

25

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Armorica

It depends on the individual. Unfortunately, you don't know when they are zero whether they are going to be sensible when they are 18...

Archi_Bald

ggb1979 wrote: »

25

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Scary, really really really scary that you think that you have another 7 (or however many) years from when your child has legally become an adult.

Firstly, they are an adult on the day they turn 18, and they can do as they like from that day onwards. You may disagree, but the law is on their side. You have eighteen, e-i-g-h-t-e-e-n, years to get to grips with this. These years might pass quickly, but it's still a very long time you have to teach your children.

Secondly, if you haven't managed to get them to accept your financial advice and competence by the time they got to 18, why do you think they will be responsible adults in other areas? Is it ok for someone who can't even be responsible (in their parents' eyes) for a few tens of £Ks to be in charge of a fire arm, represent constituents, drive heavy lorries etc etc etc? Would you actually stand up and say my daughter/son can fight and die in a war but they can't be trusted with a few tens or hundred thousand pounds?

Thirdly, why do you think your offspring will listen to you (i.e. do as you would like them to do) when they are 25 when you couldn't get through to them at 18?

And fourthly, what makes you think you are always right and they are always wrong?

But if you don't trust your offspring and want to put money away for them, keep the money in your own name, and make a will. You can gift any amount of money to your children (or anyone) whenever you like. Taxes may become due bla bla bla, and benefits payments may be affected etc etc etc

Kendall80

Archi_Bald wrote: »

why do you think your offspring will listen to you (i.e. do as you would like them to do) when they are 25 when you couldn't get through to them at 18?

Hopefully they'll be more settled at 25 in terms of employment/education, personal relationships and with a few years of managing their own finances under their belts.


I'd go for 21 though if we're plucking virtual particles from the ether.


When I was 18 I was still a kid. I think back and remember things that I did or said that were ill-advised/impetuous at best. I even had a serious car crash while showing off to a pretty girl (who is now my wife ) However by 21 having been through University my level of maturity had certainly increased.


I'm certain such circumstances are particular to the individual concerned. However, when deciding such factors we have to draw on personal experiences to some extent.

Archi_Bald

I understand all that - getting wiser as you get older. Happens to all of us, and is a great life experience. I have made a lot of stupid mistakes in my twenties, it's part of growing up.....but then I have also made stupid mistakes at age 58 that I, at age 61, wish I wouldn't have made. We all make mistakes, at all ages. And mostly, we do learn from our mistakes.......

What I don't understand is that people think/say their youngsters aren't ready to deal with money at age 18, whilst at the same time these youngsters are deemed ready to e.g. die for their country. If you think your daughter/son should not be at least 21 to be responsible for their own money, why don't you campaign for the minimum age for admission to the forces to be 21?