Best way to save for my 3 children

ejmolly

Hi

I am looking for advice on how best to save for my kids. My older 2 (age 5 and 6) have children saver accounts that I have been adding £50/month to since they were small. They both have a few thousand now. My youngest is only 9 months and I have yet to open an account for him. As I am going back to work soon I need to get this sorted so I can do the same and save £50/month.

I don’t really have time to be managing this on a regular basis. Would I better opening children’s ISAS or any other longer term investments? A few of the accounts I looked at were bonus accounts and I really don’t fancy every year having to move 3 seperate accounts.

I keep saying I am going to spend a bit of time and research all this but I simply don’t have the time so any advice most welcome!

ValiantSon

A Junior ISA (JISA) would probably be the best option. You might want to consider an S&S ISA given the timeframe; you are likely to see better returns over time with investments than with savings.

xylophone

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


https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-junior-isa?cmpgn=PS0517UKPABJI0002&gclid=EAIaIQobChMIlvXR9e6F2QIVw7vtCh1x6QR6EAAYASAAEgIkWfD_BwE

http://monevator.com/using-vanguard-lifestrategy-funds-life/

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

IanSt

Don't forget that putting money into their names will mean that they gain access to their money at 18 and spend it as they want, so you may want to consider keeping the money in your name so that you can pass out the money at a time and a purpose you feel suitable.

It also sounds that you're saving into cash accounts, which means you've got the problem that the cash accounts could start losing out to inflation, so you may want to think about investing at least some of the money. Investing the money is likely to make a lot more than just being in cash accounts - especially given that you'll be adding in on a monthly basis and will get more for your money when the markets dip.

ejmolly

Thanks all. I will look at some of these options later tonight. The stocks and shares isas are something I had already considered but got lost in all the jargon!

From looking at similar posts on here the vanguard ones seem to pop up regularly.

What I may do is keep cash account for birthday/ Christmas/small savings but for the regular monthly put into one of the other investments.

Getting access to a pot of money at 18 does concern me a little and although I am hopeful (!?!) they will be sensible who knows! I could try and keep it quiet but I’m sure over the years they would know.

Thanks. I’ll do some more reading later.

aj23_2

Use Children's Regular Savers. They pay good rates but low caps.

Homesdale Building Society do a Young Savers account, 0-23 y/o, paying 2.25% and when they are 23 matures into a 2% Home Savers account. Worth looking at.

ValiantSon

ejmolly wrote: »

Thanks all. I will look at some of these options later tonight. The stocks and shares isas are something I had already considered but got lost in all the jargon!

From looking at similar posts on here the vanguard ones seem to pop up regularly.

What I may do is keep cash account for birthday/ Christmas/small savings but for the regular monthly put into one of the other investments.

Getting access to a pot of money at 18 does concern me a little and although I am hopeful (!?!) they will be sensible who knows! I could try and keep it quiet but I’m sure over the years they would know.

Thanks. I’ll do some more reading later.

Vanguard offer a good product at a good price. If any of the jargon confuses you then just ask.

With regards to gaining access to the money at 18 it is just something that you have to accept and hope that you have brought them up to be sensible, but accepting that everyone is their own person. You can still advise them when they reach 18. You don't have to tell them about the accounts until they get to 18, but once they do then they are legally entitled to know that they have this money/investment.

Apart from some small cash savings as you suggest, i.e. money they might draw on from time to time or special things, I'd avoid cash savings because inflation will eat into the value and the rate of return is poor. S&S are likely to outperform savings over the long term.

BearWhite

ejmolly wrote: »

Thanks all. I will look at some of these options later tonight. The stocks and shares isas are something I had already considered but got lost in all the jargon!

From looking at similar posts on here the vanguard ones seem to pop up regularly.

What I may do is keep cash account for birthday/ Christmas/small savings but for the regular monthly put into one of the other investments.

Getting access to a pot of money at 18 does concern me a little and although I am hopeful (!?!) they will be sensible who knows! I could try and keep it quiet but I’m sure over the years they would know.

Thanks. I’ll do some more reading later.

This is basically what my wife and I are doing for our two kids. Any money they get for Christmas or birthdays goes into a cash savings account in there names. They can do what they want with this when they're old enough to access it.

I also have a S&S ISA in my name (Vanguard LifeStrategy 100) which I drip feed £100 a month into at the moment. When they're older and in need of some financial assistance this will be the pot which will be used if I and the wife think it's appropriate.

louloubelle79

I’m in the process of setting up Vanguard S&S Isas for my two children 7&8, easy process so far.

ejmolly

Quick read whilst baby naps!! .... Just been reading the terms and conditions of vanguard and looks like minimum £100/month for monthly saver so guessing that rules all their accounts out??

With 3 children to save for £50/month is about all I can manage at the moment

xylophone

With 3 children to save for £50/month is about all I can manage at the moment

https://www.onefamily.com/hub/finance/new-isa-junior-isa-guide/

https://www.shepherdsfriendly.co.uk/plans/child-savings/junior-isa/fund-performance

may be worth a look.