New Born Advice

Cptralls

Hi All, 
My wife and I just had our first child. I've been told there are one off government payments I can apply for along with good savings accounts.
What should my to-do list be in terms of setting up savings accounts etc be? 

xylophone

I've been told there are one off government payments I can apply for

Are you getting confused with the the payments that were made under the old CTF system (now defunct)? https://en.wikipedia.org/wiki/Child_trust_fund

You might wish to consider a Junior ISA - 

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

https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa ( but TSB for one is now offering a much lower rate - NS&I still offering 3.25%).

Other savings rates here

https://www.thisismoney.co.uk/money/saving/article-1583863/Best-savings-rates-Junior-Isas-children-s-accounts.html

https://www.moneysavingexpert.com/savings/child-savings-tax-free/

AnotherJoe

First part is, decide if you want to invest some money rather than save, and if so if you wish to do that in your name ( ISA ) or theirs (JISA). Difference is, in your name, when (If)  they get the money is in your control , in their their name it's irrevocable at age 18. 

xylophone

And if you (parents) make gifts into a non - JISA account in your child's name remember the £100 rule - see https://forums.moneysavingexpert.com/discussion/6091451/children-interest-how-does-it-work

fiisch

Congratulations.  I am in the same boat (my second daughter is 13 days old).

I have opened a Vanguard JISA, as we did with our first.  Minimum investment of £100/month or £500 lump sum, invested in Vanguard Life Strategy 100.  Once minimum amount reached, I will likely drop monthly investments to a very modest amount (eldest currently gets £50/month).  

Rationale for this is that, as has been said, at 18 the money is there's.  I hope to educate them about money so they don't blow it on fast cars and booze (as their father did at 18!), but I've made peace with the fact that I will not have control over this money, so I'm also investing additional sums on their behalf in my own ISA, with the intention that this will help us afford to support them should they decide to go to university/get on the housing ladder etc.

Alternative is a cash JISA (when my first was born, Halifax were paying 3% - not sure if this is still the case as interest rates as a whole have dropped since then), but with the timescales involved it is a bit of a no-brainer to invest in my opinion.

MaxiRobriguez

fiisch said:

Rationale for this is that, as has been said, at 18 the money is there's.  I hope to educate them about money so they don't blow it on fast cars and booze (as their father did at 18!), but I've made peace with the fact that I will not have control over this money.

Financial dducation will be better for them than the gift of money itself. There's only so much most of us can give to our children as we also have ourselves to consider. If they enter adult life with head screwed on then you've set them up for life, regardless of the £ they get access to at that age. You'll do them well.

MaxiRobriguez

And to answer the OP question. Invest it, don't save it.  The timeline is long enough to warrant putting the capital at risk to seek gains. 

mooneysaver

Gold is currently an investment which is doing very well and unlike shares it has the added benefit of practical use. I would start by purchasing a solid gold crib, as the baby grows you can purchase further amounts and have them melted down to make a larger bed for the child.

csgohan4

mooneysaver said:

Gold is currently an investment which is doing very well and unlike shares it has the added benefit of practical use. I would start by purchasing a solid gold crib, as the baby grows you can purchase further amounts and have them melted down to make a larger bed for the child.

As with anything OP, make sure you do your own research and make sure you are aware of the risks with each investment