Money Moral Dilemma: Should I save up child benefit to give to my children when they're older?

tv_dealer7

Carry on as you are - managing money with young children is tough, likely the highest period of forced spending in our lives. So use the money to make life a little bit easier for you as a family now.

As child benefit is means tested if you or partner earn over £50k, if you think you might earn more than this before kids are grown up you will effectively pay higher tax rate. In your case a 59% tax rate (68% if also paying back student loan) on earnings from £50-60k. Which is obviously a privileged position to be in, but doesn't mean it will feel like that!

Agent57

https://forums.moneysavingexpert.com/discussion/comment/80027931#Comment_80027931

Don't let Martin Lewis hear you would spend it on university fees…..

[Deleted User]

It's up to you if you want to put money aside for your children, the amount you receive in child benefit, or more or less.

ripongrammargirl

The purpose of child benefit is to purchase useful and necessary items for children as they grow. The people that spend it on items for themself, especially vile and illegal habits like smoking, drinking, drugs are the ones that should have this benefit removed as they just have children for this money (I know as I have taught lots of children in this situation). I think it's time that money was stopped and it came in the form of vouchers for clothing, food, essentials etc and then stealing this cash for their own selfish habits would no longer be possible. This is not a dilemma at all and you have answered your own question.

Lifes_Grand_Plan

I've been doing exactly this... In fact I've been doing it up too, so save them £100 each per month and have done since they were born. I'm in a privileged position to be able to do this though, so if someone else says they were using the Child Benefit money for day to day costs, I'd think no less of them.

So in summary OP, if you can afford to save it for them, do. If your can't, then don't.

nikki31868

ripongrammar girl

Your answer is very personal by the sounds of it

https://forums.moneysavingexpert.com/discussion/comment/80028174#Comment_80028174

to say that people should not spend their money on "Vile and illegal habits like smoking, drinking and drugs" should have the benefit removed, is extremely judgemental. Only one of those 3 items, is illegal, last time I heard!
The way this money is spent or invested is up to each individual. My mother saved all of mine and managed her income, so when I passed my driving test at 17, she presented me with a building society book, with enough for me to buy my first (second hand) car. That taught me to manage my own income really well, so as soon as I could, I started saving a portion of my wages.

So, it's an individual choice, no wrong or right.

keithyno.1

I don't see any Money Moral Dilemma here myself. You're their parent, so just do what YOU feel is best for them - they're hardly old enough to make any choices themselves. And if you decide to spend it on them now, they're not going to grow up resentfully thinking, "My Mum/Dad got ALL that child benefit for us over the years and never put it in a savings account for us!" as they'll never even know about it.

keithyno.1

ripongrammargirl (post at 7.20pm), drinking and smoking might be vile in your eyes and in maybe many more people's, but the last time I looked neither habit is illegal. There is a difference. Just saying.

gloriouslyhappy

It's meant to help parents with the cost of raising a child - keeping them adequately fed, clothed and warm. If you're in a position to save it, then perhaps it's not needed. There are many people for whom this payment is a lifeline with no luxury option of considering putting it into a future fund for luxuries like cars.

I agree with the idea that part of the payment should be ring fenced for food and clothing, and if the parents don't need it, it should go back into the pot to help those who do.

CapeTown

You could argue that if you are thinking of saving it for them that you don't need it. However, I would use it if spare too make their childhood amazing. Special outings, trips, experiences. My children had an amazing childhood because I wanted it to be the opposite of mine growing up.