Monthly savings for a newborn?

atush

AnnieMags wrote: »

This thread seems to have been 'hijacked', dealing more with what age maturity kicks in rather than the advice the poster asked for - what account to save for their child in. Anyone? I am not in this situation myself, so cannot offer advice - just thought it might be an idea to get this post back on track.

I agree, but I did say in t he beginning to use a JISA or investment trust savings plan.

talexuser

After discussion with his parents, we decided to save through the mothers unused ISA allowance, so she had control of the money for our new grandchild. We all would like to see a goodly pot of money spent on something useful like university, first car, deposit on flat etc rather than wasted on booze, parties etc.

With a 16 year plus timescale a stockmarket investment was the way to go rather than cash. I decided an investment trust through the company which was basically good value and went for Murray International for a good manager/growth/dividend record.

Because of the minimum investment (depends on the individual trust) you would have to save cash in the highest interest account you can find (one of the current accounts) to get to say a grand, and then top up the ISA allowance every now and then.

Mistermeaner

Archi_Bald wrote: »

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

That's alot of questions, many leading and presumptuous.

You asked what age I think and gave some options. I answered.

All kids are different and ability to get killed in war, drink and spend money wisely are in no way linked.

Personally, in general I don't think 18 is the right age to give a kid money as I they don't generally need it and ii priorities at 18 are very different from at 25.

If anyone thinks their kids will be the finished article by 18 and you will have imparted upon all the wisdom they need you are very niaive

25 for me.

My plan is to maintain control by intercepting the mail.

Koicarp

Our third child is due in march, the others will be 22 and 23 respectively! I'm thinking of putting the family allowance into a pension for her, perhaps the vanguard 100 % equity fund. The other two have very little money from us as when they were small we had very little.
At 18 in the '80s I brought home approx £350 per week and spent it mostly on booze, women and my motorbike. I wasted the rest.

Mistermeaner

Koicarp wrote: »

spent it mostly on booze, women and my motorbike. I wasted the rest.

George best I believe :beer:

atush

talexuser wrote: »

After discussion with his parents, we decided to save through the mothers unused ISA allowance, so she had control of the money for our new grandchild. We all would like to see a goodly pot of money spent on something useful like university, first car, deposit on flat etc rather than wasted on booze, parties etc.

With a 16 year plus timescale a stockmarket investment was the way to go rather than cash. I decided an investment trust through the company which was basically good value and went for Murray International for a good manager/growth/dividend record.

Because of the minimum investment (depends on the individual trust) you would have to save cash in the highest interest account you can find (one of the current accounts) to get to say a grand, and then top up the ISA allowance every now and then.

Be aware when you invest this way, the money belongs to the mother. So is a marital asset to be split on divorce, or to be spent on living costs should they be on means tested benefits and have over the savings allowance.

Or subject to seizure should they have a court judgement against.

somnus

I regularly read a great investment blog and it recently featured an article about saving for children. Take a look here:


http://monevator.com/how-to-invest-for-children/

talexuser

atush wrote: »

Be aware when you invest this way, the money belongs to the mother. So is a marital asset to be split on divorce, or to be spent on living costs should they be on means tested benefits and have over the savings allowance.

Or subject to seizure should they have a court judgement against.

Agreed, but any benefit circumstances are so unlikely they did not rate in our discussions, and they already have an agreement that is effectively a prenup.