any ideas for investment for young children that others can contribute to? (small amounts?)

me1000uk

Hi all,
I was just wondering if there's a way to save money for 2 young children within the context I will describe?
1) children pre-school age
2) looking to put a (pretty) small amount regularly and hope it builds up over the years
3) Is there a product that meets the above that family members or friends can send gifts to? Again likely not much but if say a birthday gift from of a hundred quid or whatever?

My main confusion regarding the products is to mitigate the risk of them blowing it all at 18 on a luxury holiday rather than education/deposit etc, and also for small gifts here and there from others (if that complicates things or there's something regulatory about it)?

I'm sure they're not new questions so apologies but hopefully can get an idea or two?
Thank you.

eskbanker

me1000uk said:

My main confusion regarding the products is to mitigate the risk of them blowing it all at 18 on a luxury holiday rather than education/deposit etc

Savings accounts (including junior ISAs) in the children's names will allow them unfettered access to the money at 18, regardless of your opinions about the wisdom of what they want to spend it on, so if you want to retain control beyond that then you'd need to keep any money in adult accounts in your own name (and anyone else wanting to gift money to the children would need to do likewise).  Mitigating the risk of unwise spending is best dealt with via education!

jimjames

A junior ISA will do what you want for contributions but gives access at 18. Really depends what importance you put on the different criteria.

cloud_dog

me1000uk said:

Hi all,
I was just wondering if there's a way to save money for 2 young children within the context I will describe?
1) children pre-school age
2) looking to put a (pretty) small amount regularly and hope it builds up over the years
3) Is there a product that meets the above that family members or friends can send gifts to? Again likely not much but if say a birthday gift from of a hundred quid or whatever?

My main confusion regarding the products is to mitigate the risk of them blowing it all at 18 on a luxury holiday rather than education/deposit etc, and also for small gifts here and there from others (if that complicates things or there's something regulatory about it)?

Why not do a bit of both.  Commence by investing in JISAs (would recommend Fidelity as there are no charges for the JISA), and if the JISA gets to a size you feel is more than sufficient then switch the contributions in to account(s) in your name(s) for their benefit.  Tiz what we did.

xylophone

Why not open a cash JISA for each child (to which other adults can contribute and to which you may wish to contribute modest sums from time to time) and regard your own investment ISA as "earmarked" for your children at an appropriate point in their lives?

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

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

me1000uk

Thanks for the responses. I guess it's not an all or nothing and your suggestions of a combo approach makes sense which is what I will try to do. Thanks for the recommendation and links.