Investing a 9 year olds inheritance money.

Cornish_mum

Hi I just wanted to chip in with a similar experience, with a slightly older child (age 11); I spoke with my son about risk of investing and types of companies (his thoughts about both). This helped me choose the type of fund to buy on his behalf within a J (S & S) ISA and helped him start to understand about money.

You may find monevator website helpful information about platforms and types of products. Key thing is to understand the fees. CM

Sarahspangles

ITtim said:

theoretica said:

Just to be clear, unless the will actually gives the money to you as parents, it is very likely that it will become his absolutely when he turns 18 (or 16 in Scotland).  Which will happen automatically with junior ISAs. So your control of it being spent for education or property will need to be through how you have taught him to manage money and respect the source of it.

Yes, and this is probably one of my only real concerns, based soley on the fact that I had access to some savings in my name and at the age of 18 I blew it on a guitar

My understanding is that the money will be passed to us and it’s then up to us how we deal with it. I think on balance we need to show that we trust him to use the money wisely.

My two are now in their mid 20s and still have some ringfenced savings that were originally an inheritance, monthly contributions from me while they were school age, plus a proportion of Christmas and birthday money. I was surprised recently when one of them said she’d had to borrow from this and had reimbursed it as a priority.

These savings seem to have somehow gained ‘protection’ from splurging, possibly just because they have been accumulating for so long and as children they contributed themselves? As children, I always involved them when there was a way to improve interest and now they consult their old mum about how to invest it.

I do think children learn from observing how their parents manage their own money - show don’t tell.

scott_lithgows

Hi,got a 13 & 15 year old but they were 7 years younger when my mum passed.
She had saved a tenner a week  in each of their child trust funds but had instructed me that it was for college/university/driving lessons..
So I levelled the amounts but placed £1000 each in their normal passbook as they wouldn't be able to access the cash till 18.so no driving lessons at 17 then.