How much to save for a child?

OUNN

We're in a fortunate position that we were looking at roughly £100 a month for the little one.

Initially I went with £100 a month into a JISA (it was the minimum funding), but my wife wasn't too keen on that kind of sum becoming little ones when they turn 18 - while we will be teaching her all we can about money and investing, you never know how they will be in their teenage years.

So we've compromised. The JISA allows lump sums. So I'm now funding this by £600 a year, and also funding my own ISA in the same fund by £600 a year.
It's still working out at the £100 a month, but we have some control over when or if the second pot becomes the little ones.

On top of that, I'm in the process (a month and a half and counting) of setting up a stakeholder pension for the little one, to fund with £25 a month initially. With the top up, I view it as money back from the government for some of the tax I pay :rotfl:

Schoolworker

You guys seem to be able to put lots away for your kids. I have 2 kids and both have a junior ISA account - daughter got money from government but son did not but we put in money equal to the government for them so it's only about £600+ in this account which they will get at 18.

We have another child account for both and £25 was put in every month until the age of 5 I think and now it's £30 each month for each h child and I can decide when to give this money to our kids. It's a reasonable amount I think considering we go holidays and day trips etc without getting any child benefit. It will give them a bit of a start and hope they will spend ok.

I got about £200 in a bank account from my parents but they did buy a new bed when I bought my first flat and made a big payment towards our wedding so still helped me out.

stoozie1

We mostly save towards what WE will be expected by the government to put towards their University expenses, £92k at last conservative reckoning.

Once I know we are ok to fund that, I'll start putting aside something to help with a house deposit.

Alexland

We put so much away because with an uncertain future we want our son to have the opportunity to go to university, buy a property and have his own family. Sure that might not suit him but at least he will have the option.

We stop short of giving him a pension as the tax saving is marginal (in my case I expect to have LTA issues anyway so am glad my parents didn't start me a pension) and it's good that he has something in life that he can claim as entirely his achievement.

stoozie1 wrote: »

We mostly save towards what WE will be expected by the government to put towards their University expenses, £92k at last conservative reckoning.

Once I know we are ok to fund that, I'll start putting aside something to help with a house deposit.

Ouch I was thinking £70k (£30k tuition fees and £40k living expenses) is £92k an inflation adjusted number, 4 years or London accommodation? I expect our son would have a loan for some of it. I had to pay back a student loan and work the holidays.

2 years old and we have invested around £9k for him so far. Plus whatever share of my LISA he gets towards a house deposit. The rest is going into my wife's pension until her LISA becomes available.

Alex.

stoozie1

I've got 4 sons, so that's all of them

Alexland

Aah in which case is that enough?

stoozie1

Should be, I assumed we'd be on similar earnings to now, and used the MSE calculator as to what our top up would be expected to be.

MallyGirl

I only have one DD but she is looking at a 6 year degree and she will only get the minimum maintenance loan so that is £25k + from us just to survive, without looking at repaying any of the loans

Fatbritabroad

Reaper wrote: »

As above any figures supplied will be meaningless. It depends whether the parents are millionaires or deeply in debt.

An 18 year old will have plenty of expenses to cover. They may be thinking about a house, car, and univeristy. All the most expensive things just when they have the least. So anything will be welcome.

The earlier you invest the more time there is for it to grow, so I put the bulk of it in early. I still contribute some each year but that may decline over time.

Very good point. One i kind of wish my family had considered. Wealthy parents and grandparents who never made any provision for me. Not that that is an inalienable right and ive done fine by myself (and quite like the fact that i dont owe anyone anything) but parent has become remarkably generous now hes retired and I know my grandparents have inheritance for me. While welcome of course and I'm grateful Would have been far more useful when i was trying to buy my first place at 21. I think theres often a patronising view that 21 year olds will blow money theyve been given. Understandable but if said 21 year old is trying to buy s house that would suggest they arent going spend it on a porsche :A

AnotherJoe

I see this thread has been resurrected. I'm saving in wife's SIPP for the 20% uplift. When the money comes out there won't be any tax to pay on it

Unless you are feeelthy stinkin' rich I don't think it's useful to be locking away money until child is likely going to be about 60.