Money Moral Dilemma: Should I open savings accounts for my nieces?

ducatidemon100

When you discuss the idea of opening an account for your nieces, you might want to discus what type of account. Indeed, you might want to give that some thought too. When would you be happy that they access the money? If it's in their names, they could access it at 18 and spend it on what they like; which is OK. If you would like to really help their financial futures, I would suggest a Junior SIPP, which has the benefit of 20% HMRC rebate (you pay £80, the SIPP gets £100). Clearly they will not be able to access it until they are 55 (currently) but it would give them a good start towards a healthy pension (and who knows if the State Pension will exist in 50 years time?). You will need the parents to open a Junior SIPP, but you can set up a direct debit to pay into it. I would suggest a range of ETFs. I use A J Bell for my grandsons (I do not hold shares in AJB, or receive commission!).

Marcon

Why ask the parents when you can ask a random bunch of strangers who don't know the family at all.

Just give them cash and let their parents decide what the kids do with it. Or suggest to the parents that you open a stakeholder pension for each of the children...that way they get a 20% top up from the taxman even though they haven't paid any tax.

gloriouslyhappy

I've opened a savings account in my name specifically for the youngest generation in my family (no children of my own but many great nephews and nieces). I put in some money at Christmas and birthdays, and the intention is to be able to give a lump sum when needed, either to the parents for eg a school trip - when normality returns! - or to the child when older for driving lessons, towards a car, uni fees etc. This way I have control over the money in case they're not the sort of teenager who'd spend a lump sum wisely, and I don't offend any parents who are in lower economic circumstances by implying they're not providing for their children.

wannabe_a_saver

gloriouslyhappy said:

I've opened a savings account in my name specifically for the youngest generation in my family (no children of my own but many great nephews and nieces). I put in some money at Christmas and birthdays, and the intention is to be able to give a lump sum when needed, either to the parents for eg a school trip - when normality returns! - or to the child when older for driving lessons, towards a car, uni fees etc. This way I have control over the money in case they're not the sort of teenager who'd spend a lump sum wisely, and I don't offend any parents who are in lower economic circumstances by implying they're not providing for their children.

I thin that's a lovely idea, and by just doing it quietly you aren't upsetting anybody while the children are younger you are just preparing for a fantastic surprise for them when they are grown up! 

Pollycat

justworriedabit said:

Personally, I would not even ask as they may find it insulting and may not want to do that ATM.
Therefore, give them cash gifts if you wish and let them be.

A brother and sister-in-law finding a simple question about gifting money to their child 'insulting'?

Bizarre.

No wonder the world is in the mess it's in if people find such things 'insulting'.

Spendless

It's some time ago but when we opened accounts for our children then we had to provide birth certificates in order to open them. It's not something you can 'just' do. Though the adults name appears on the account as trustee and they can withdraw/deposit savings as they go along, at 18 the money becomes theirs. I have a vague feeling that for my eldest(now 21) that I got told he could have it at 16. If this is still correct, unless you are able to obtain the birth certificates you aren't going to be able to open them.
What my friend's Mum did instead is what gloriouslyhappy has described above. For each of her Grandchildren, she opened an account in her name and saved every month and then gave each the amount on their 18th birthday. 

jajx28

I agree, I have had to do this for my grandson born during lockdown, as my bank required me to visit a branch to set up an account for him, which I obviously don't want to do currently, so set an account in my name online.  My other grandchildren, I set up child savings accounts for which had good rates of interest ( not so good recently) and I pay monthly DDs into their accounts and lump sums for birthdays, Christmas and Easter. I intend to change my grandson's account when I can get to the bank with his birth certificate. I see this as an entirely personal thing and would never involve anyone else in saving as the money is then a gift completely from me to my grandchild, when I chose or die. 

Pollycat

Spendless said:

It's some time ago but when we opened accounts for our children then we had to provide birth certificates in order to open them. It's not something you can 'just' do. Though the adults name appears on the account as trustee and they can withdraw/deposit savings as they go along, at 18 the money becomes theirs. I have a vague feeling that for my eldest(now 21) that I got told he could have it at 16. If this is still correct, unless you are able to obtain the birth certificates you aren't going to be able to open them.
What my friend's Mum did instead is what gloriouslyhappy has described above. For each of her Grandchildren, she opened an account in her name and saved every month and then gave each the amount on their 18th birthday. 

That's exactly what I've done - I posted this on another thread a few days ago:

Pollycat said:

We have been saving money for my sister's children since they were born, although not in their names.

That means we can choose when they will have the money.

One child is over 18 and - just like the OP's daughter - would have wasted that money within a few weeks of having it.

We are waiting for a suitable time to hand over the money, it may well be that both of them receive the money at the same time, despite a few years difference in ages.

...but I did speak to my sister beforehand.

Most of these 'moneysaving dilemmas' could be sorted out by simply talking.

John_Gray

Why has there been no discussion of the outrageous conduct of the husband in this Dilemma?  "my husband told me I'm meddling and to stop"

He is supposed to be supportive and encouraging, not censorious and deprecating.

The Moral Dilemma should really have been: "Should I divorce him now, or later?"

</snarcasm>

MrsFrenzy

Just ask them! Although recently a family member opened up an accounts for my children they needed their birth certificates so bare that in mind (may also depend on the bank/building society)