Invest child allowance for daughter

Options
Hello all,
I'm a total newbie when it comes to investments but any suggestions on the following would be most appreciated.

I would like to save my daughter's child allowance payments for when she is 18. I have them in a savings account now but surely there must be better places to put it? She's only 1 so this will be over the next 17 years.

Thanks for any suggestions.
Allen
«13

Comments

  • Keep_pedalling
    Keep_pedalling Posts: 16,750 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Options
    Personally for that long time frame I would be looking at opening a S&Ss JISA.

    http://www.moneysupermarket.com/savings/junior-isas/
  • edinburgher
    edinburgher Posts: 13,469 Forumite
    Name Dropper First Anniversary First Post
    edited 23 July 2016 at 7:14PM
    Options
    I put family gifts into a cash JISA paying 4% and our contribution (£78/m, very similar to CB amount) into a S&S ISA where the money is invested in the Vanguard LifeStrategy 80% fund. I don't invest the bulk of the money in DD's name because she could turn into a spendthrift and I wouldn't feel comfortable handing over a substantial sum of money unless I know she'll do something vaguely sensible with it :D

    It's all very low maintenance and ticks along nicely, she probably has more spare cash than either of her parents!
  • xylophone
    xylophone Posts: 44,584 Forumite
    Name Dropper First Anniversary First Post
    Options
    Assuming that you are happy for her to access the cash when she is 18. you might open a JISA for her - this can be stocks and shares or cash or a mixture.

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

    If you are not happy about her having access to what could be a substantial sum at age 18, then perhaps consider saving within your own ISA, which you would think of as "earmarked" for your child at a time of your choosing.
  • Voyager2002
    Voyager2002 Posts: 15,334 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Options
    wmalgal wrote: »
    Hello all,
    I'm a total newbie when it comes to investments but any suggestions on the following would be most appreciated.

    I would like to save my daughter's child allowance payments for when she is 18. I have them in a savings account now but surely there must be better places to put it? She's only 1 so this will be over the next 17 years.

    Thanks for any suggestions.
    Allen

    I would question whether this is wise: there are so many ways to spend money on a child that benefits them at the time (everything from nutritious food to school trips) and this was the original purpose of child benefit.
  • atush
    atush Posts: 18,730 Forumite
    Name Dropper First Anniversary First Post
    Options
    I would assume that a parent thinking about investing for their child, would NOT be stinting with nutritious food or school trips.

    And that those who would, would NOT be asking about investments for them, but spending the money on themselves?

    Silly questions aside, I would go the Jisa route with something like vanguard or a good general investment trust. i invested my children's CB into an investment trust and used the money to help pay their way through university.
  • Flobberchops
    Flobberchops Posts: 1,279 Forumite
    First Post Combo Breaker First Anniversary
    Options
    Junior ISAs are a great idea - rather than choosing between a cash JISA and a S&S JISA, why not both? You could then split the monthly cash between them as you see fit - probably favouring the S&S to begin with in my opinion, and adjust accordingly as the 18th birthday draws nearer.

    A kid's regular saver could also be a good place to build cash. Halifax do one paying 4%.
    : )
  • wmalgal
    Options
    Thanks to all I will look into JISAs

    And just to clarify I can well afford to provide my DD with nutritional food and school trips etc. when it comes to it ��

    I think the way things are going for universities and fees etc it's very sensible to be putting money by for when she is 18....

    Thanks to all for the help!
  • Dird
    Dird Posts: 2,703 Forumite
    First Anniversary Combo Breaker First Post
    Options
    There should be an option to prevent them getting access until you sign it over rather than just 18
    Mortgage (Nov 15): £79,950 | Mortgage (May 19): £71,754 | Mortgage (Sep 22): £0
    Cashback sites: £900 | £30k in 2016: £30,300 (101%)
  • Mojisola
    Mojisola Posts: 35,559 Forumite
    Name Dropper First Post First Anniversary
    Options
    wmalgal wrote: »
    I think the way things are going for universities and fees etc it's very sensible to be putting money by for when she is 18....

    It's very sensible of you to save.

    How sensible is she going to be at 18? How would you feel if the money disappeared in a couple of months of wild spending/holidays/drinking (or worse)/becoming everyone's best mate by 'treating them' to a good time/and so on.
  • wmalgal
    Options
    OK so if I were to save or invest it somewhere where I have control of it any ideas? thanks all for responding..
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.6K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.8K Work, Benefits & Business
  • 608.8K Mortgages, Homes & Bills
  • 173.3K Life & Family
  • 248.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards