Savings suggestions please

MrsSave

Hi. I am looking for advice from people with more knowledge about savings than me! I am wanting to save a regular amount (£10 to start) in an account that I cannot access easily, so that when my ds (now 20 months) grows up and we are faced with uni/wedding/help with house for example, we will have a set amount put to one side. I know £10 a month isn't much, but at the moment we have debts (though all on interest free) so the majority of our spare money gets split between emergency fund (isa) and paying off the debts. £10 a month won't be noticeable, but will be a small help in the future. Once the debt is paid off, this would then be increased.

What I'm asking is, what's the best type of account for this? Would this be a regular saver, or a bond of some sort?

Thank you.

kingrulzuk

Have you checked Junior Individual Savings Accounts (ISA)??

bigfreddiel

kingrulzuk wrote: »

Have you checked Junior Individual Savings Accounts (ISA)??

Of course a jisa is a good idea but when the child is 18 it's his to do as he wishes with and using it for uni, a deposit on a property or something sensible may not be on his agenda - a holiday with his mates may be more to his liking and the parents can't do a thing about it.

My advice, start a pension for your kid(s)

Cheers fj

MrsSave

We do already pay into a junior isa for our son, and also any birthday/Christmas money he gets goes into it. As mentioned, this will be his when he turns 16/18 (I can't remember which at the moment). This was more for us to save separately for when he goes off to uni (if he goes), gets married or any other big events that will happen (or pay off the mortgage early!).

I have a works pension, but I'm assuming what you mentioned is different. As I said, I'm really not very knowledgable when it comes to finance and the different accounts we could have. I have just opened a new isa at a higher interest rate as it is a new financial year. Will set up a bank transfer for now into that and will take some time to research other methods of saving.

Thank you.

kingrulzuk

MrsSave wrote: »

We do already pay into a junior isa for our son, and also any birthday/Christmas money he gets goes into it. As mentioned, this will be his when he turns 16/18 (I can't remember which at the moment). This was more for us to save separately for when he goes off to uni (if he goes), gets married or any other big events that will happen (or pay off the mortgage early!).

I have a works pension, but I'm assuming what you mentioned is different. As I said, I'm really not very knowledgable when it comes to finance and the different accounts we could have. I have just opened a new isa at a higher interest rate as it is a new financial year. Will set up a bank transfer for now into that and will take some time to research other methods of saving.

Thank you.

I must say you have done well as per ur signature. Good luck

MrsSave

kingrulzuk wrote: »

I must say you have done well as per ur signature. Good luck

Thank you. We're getting there slowly!

bigfreddiel

MrsSave wrote: »

We do already pay into a junior isa for our son, and also any birthday/Christmas money he gets goes into it. As mentioned, this will be his when he turns 16/18 (I can't remember which at the moment). This was more for us to save separately for when he goes off to uni (if he goes), gets married or any other big events that will happen (or pay off the mortgage early!).

I have a works pension, but I'm assuming what you mentioned is different. As I said, I'm really not very knowledgable when it comes to finance and the different accounts we could have. I have just opened a new isa at a higher interest rate as it is a new financial year. Will set up a bank transfer for now into that and will take some time to research other methods of saving.

Thank you.

I meant a pension for your kids

fj

Purplesky_2

You could grab one of these every 2.5 months?
http://www.nsandi.com/childrens-bonds

My Mum (and grandparents) did these for us, and we've been able to use them for house deposits and for giving up work while at Uni. I used one for covering a period where I was unable to work due to recovering from surgery right after University.

You can start a pension but that's a much bigger undertaking at £25 a month minimum, I think? Although of in the future you can afford it, a pension for your kids would be a very effective way to save and set them up for a comfortable adulthood. Assuming everything else is equal, Paying in £2000 a year between the ages of 14 and 19 could very probably beat out paying £2000 a year every year between the ages of 27 and 65.

Otherwise, you may just want to consider one of the regular savings accounts around to grab the interest for now, and earmark it in your head for them? You could always move to a mutual fund/S&S ISA later on, if you have a little more each month after paying off all your debts? My Mum would always file it away under our names and not hers, so she kind of forgot about it!