Saving for my daughters uni fees

RBJ81

Hi All,
I've just had a daughter and was thinking of starting an ISA to save £100 a month for the next 18 odd years. The ISA's I've seen don't seem to be offering very much in terms of interest so I was wondering if there are any other options out there for me? I am not overly risk adverse.

Cheers

Barrie

PeacefulWaters

Junior stocks and shares ISA.

xylophone

See https://www.gov.uk/junior-individual-savings-accounts/overview

http://monevator.com/how-to-invest-for-children/ (stocks and shares)

http://www.moneysavingexpert.com/savings/junior-isa (Cash)

bigfreddiel

PeacefulWaters wrote: »

Junior stocks and shares ISA.

The trouble with that is it belongs to your daughter when she turns 18 and she may want to spend it on other things like a holiday, clothes, boyfriends and so on.

It's a nice thing to do tho' so go for it

Cheers fj

EdGasket

She might not go to uni. By the time she does, fees will be a lot higher than they are now. Maybe she'll go for an apprentiship or just marry someone rich

Aretnap

As you're looking at an investment period of 18 years or so I'd definitely be thinking in terms of stocks and shares rather than cash.

If you don't like the idea of your daughter getting unrestricted access to the lot on her 18th birthday and if you're not using the whole of your own ISA allowance then an alternative is to set up a S&S ISA in your own name and earmark all or part of it for your her - that way you can give it to her at a time you choose under the terms you choose. it must be added that there are some disadvantages to doing it like this. Notably it would be counted as your savings rather than hers so if you were ever in need of means tested benefits you might be expected to spend it before becoming eligible. Plus there would be inheritance tax implications if you died before or soon after giving it to her, if your estate was large enough to be subject to inheritance tax.

mvarrier

Hi Barrie.

Good plan, I've just done the same for my son.

I opened a S&S JISA with Cavendish online (joint cheapest platform for investing in funds) and I am putting £100/month in to the Vanguard Lifestrategy 100 acc fund (a good value, diversified, auto re-balancing, passive/tracker fund).

I will impart my financial/economic wisdom (what little there is), and hope for the best. If he chooses to spend it unwisely ho hum.