Best savings or investment for the future for 3 and a half year old?

fitzykev

Hi what is the best savings or investment account I can start up for my three and a half year old? I know his grandparents have put money away for him but I am not sure if it is a junior ISA 

ChilliBob

Junior ISA - 100% Equities, Cheapest Global Index fund you can find.

I did this, as an experiment, for my daughter, and for my son I tried the, mostly, active route - needless to say one involved loads of research, playing around etc, and it's worse off .... 

Fidelity or H&L both offer a zero fees option which is pretty hard to beat tbh

El_Torro

Only parents or legal guardians can open a Junior ISA for a child, so assuming you're the parent it's unlikely to have happened without you knowing.

I agree with ChilliBob, a global tracker probably makes most sense in this situation. 

It's worth noting that if the money is in the child's name (for example in a Junior ISA) then legally they can access the money when they are 18 (16 in Scotland). 

xylophone

It's worth noting that if the money is in the child's name (for example in a Junior ISA) then legally they can access the money when they are 18 (16 in Scotland). 

A 16 year old in Scotland (not the rest of the UK) could access and control money held in his/her name in  a Bare Trust  but while a 16 year old anywhere in the UK could become the registered contact  for his/her JISA, he /she could not access the account until the age of 18.

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

marycanary

I have money for my grandchildren in HSBC FTSE All World Index C Acc. I haven't used a JISA because I want to control when they receive the money. If their lifestyle at 18 means the money will not help them or will injure them I will keep it until it will be helpful.

Sg28

marycanary said:

I have money for my grandchildren in HSBC FTSE All World Index C Acc. I haven't used a JISA because I want to control when they receive the money. If their lifestyle at 18 means the money will not help them or will injure them I will keep it until it will be helpful.

I have this fund for my sons JISA and pension. 

Im hoping that I can teach him to be clever with money from a very early age and that he will be responsible with it at 18.

DavidT67

Our sons both received their Junior ISAs when they turned eighteen and they were converted into adult S&S ISAs under their control.  They haven't gone mad with it, they understand it's for university costs, house deposit, sensible car purchase, etc. 

They also both opened cash ISAs from sixteen and moved some money into LISA at eighteen. 

So hopefully they continue to be financially responsible whilst at university and after they leave home. 

marycanary

Sg28 said:

marycanary said:

I have money for my grandchildren in HSBC FTSE All World Index C Acc. I haven't used a JISA because I want to control when they receive the money. If their lifestyle at 18 means the money will not help them or will injure them I will keep it until it will be helpful.

I have this fund for my sons JISA and pension. 

Im hoping that I can teach him to be clever with money from a very early age and that he will be responsible with it at 18.

I hope so too.

DavidT67 said:

Our sons both received their Junior ISAs when they turned eighteen and they were converted into adult S&S ISAs under their control.  They haven't gone mad with it, they understand it's for university costs, house deposit, sensible car purchase, etc. 

They also both opened cash ISAs from sixteen and moved some money into LISA at eighteen. 

So hopefully they continue to be financially responsible whilst at university and after they leave home. 

I'm glad your sons are such responsible young men. I have a young relative who at 18 years old was NEET and was using hard drugs. The stress of their actions nearly killed their parents as they changed from an 'A' student to a drug user. Any money they received at this time would have only injured them. I have no reason to believe any of my grandchildren will go down this route but personally, I don't want any chance that my hard earned money will result in harm to them.

Albermarle

marycanary said:

Sg28 said:

marycanary said:

I have money for my grandchildren in HSBC FTSE All World Index C Acc. I haven't used a JISA because I want to control when they receive the money. If their lifestyle at 18 means the money will not help them or will injure them I will keep it until it will be helpful.

I have this fund for my sons JISA and pension. 

Im hoping that I can teach him to be clever with money from a very early age and that he will be responsible with it at 18.

I hope so too.

DavidT67 said:

Our sons both received their Junior ISAs when they turned eighteen and they were converted into adult S&S ISAs under their control.  They haven't gone mad with it, they understand it's for university costs, house deposit, sensible car purchase, etc. 

They also both opened cash ISAs from sixteen and moved some money into LISA at eighteen. 

So hopefully they continue to be financially responsible whilst at university and after they leave home. 

I'm glad your sons are such responsible young men. I have a young relative who at 18 years old was NEET and was using hard drugs. The stress of their actions nearly killed their parents as they changed from an 'A' student to a drug user. Any money they received at this time would have only injured them. I have no reason to believe any of my grandchildren will go down this route but personally, I don't want any chance that my hard earned money will result in harm to them.

Probably most 18 year olds will not be quite as responsible as those of @DavidT67, or as out of control as the person you mention. More typical would be to blow some of it and then regret it - a life lesson in itself.
In this case there is something to be said for a halfway house. Where they have access to some money at 18, but you keep some under your own control as well.