Moving sons money

chelseablue

I suppose this may be more of a moral question but anyway:

I have a S&S ISA in my name with 2 funds in it, one is mine one is for my son (I contribute monthly to both funds)

Since he was born I have paid any birthday/Christmas money he gets into his Halifax Kids Saver account

There is £650 in there and this month he got £1.20 interest

I was wondering whether it would be better off moving this money into his fund in my S&S ISA?

Im thinking as long term it would be better off in the ISA, he's only 5 so hopefully I shouldn't need to give him any of the ISA money for about 20 years

cloud_dog

chelseablue wrote: »

I suppose this may be more of a moral question but anyway:

I have a S&S ISA in my name with 2 funds in it, one is mine one is for my son (I contribute monthly to both funds)

Since he was born I have paid any birthday/Christmas money he gets into his Halifax Kids Saver account

There is £650 in there and this month he got £1.20 interest

I was wondering whether it would be better off moving this money into his fund in my S&S ISA?

Im thinking as long term it would be better off in the ISA, he's only 5 so hopefully I shouldn't need to give him any of the ISA money for about 20 years

There is both a technical (legal) and moral issue with this in my eyes.

Firstly, the money is in an account in your son's name so moving it in to an account in your name raises the possibility of all sorts of problems going forward. So, don't. Consider a S&S JISA if you wish.

Secondly, from a moral stand point people gave your son money for him to 'use' and to obtain the benefit from it; unless there were specific instructions on when / how to use the money. This money should therefore really be available to your son. I appreciate he is still 5 but, even at 5 money given to my daughter was hers, i.e. wanted to spend £20 at Build-a-Bear (bain of my life, so glad she is older). Obviously, I do not know the amounts in question etc but the basic premise applies.

chelseablue

Yes that's what I was wrestling with, wanting to make the most of his money for him for long term growth but thinking I would be stealing from him in doing so

I think I'll leave it where it is (I mean as cash, I'll look for a better interest rate for him)

He know's he has money as I take him with me to pay in his cheques and I explain the importance of saving

Sometimes he's asked "Mummy how much money do I have in my bank" and I tell him but he's never asked to spend any :rotfl:

xylophone

Why not consider a cash JISA for him as you are investing for his long term benefit?

Coventry pays 3.6% at the moment.

This would not prevent his having a "pocket money" account as well.

chelseablue

xylophone wrote: »

Why not consider a cash JISA for him as you are investing for his long term benefit?

Coventry pays 3.6% at the moment.

This would not prevent his having a "pocket money" account as well.

Does the money become his when he's 18? Say if there's around 30 grand in there by then and he blows it all :eek: (hopefully not but you never know)

xylophone

Does the money become his when he's 18?

Yes, it does but if you were going to use it for gifts from friends and family, the money is rightfully legally and beneficially his anyway.......

Albermarle

Say if there's around 30 grand in there by then and he blows it all

He will be 18 and an adult so I guess he will do what he wants with it.
All you can do is try and bring him up so he is not the type to be reckless, and keep your fingers crossed.

chelseablue

xylophone wrote: »

Yes, it does but if you were going to use it for gifts from friends and family, the money is rightfully legally and beneficially his anyway.......

Yes didn't think of that I thought you meant me invest in that instead , I would still be saving separately for him in my isa