Finances for Kids

newbieni

Hi All,

I have two kids and I want to get their finances setup so that they have a little nest egg when they become adults. I don't think the Junior SIPP is suitable as I want they to have access to their finances before retirement and I don't think that adding funds for them to my pots works as it will get confusing. 

So this brings me to the Junior Stocks and Shares ISA for both with a global index fund setup.

My questions are twofold:

1. Does my thinking thus far make sense?
2. What do I do next in terms of deciding an ISA and fund?

I want something that I can add money at Christmas and birthday time with adhoc funding throughout the year. 

Thanks in advance. 

Albermarle

If the kids are young then an invested JISA is usually the best way to go. They will get full access to the money at 18.
These two investment platforms have a zero fee for JISA's
Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity
Junior ISA | Hargreaves Lansdown (hl.co.uk)

A global index tracker is a good option due to the long timescale involved, but be aware it will bounce around quite a bit.
If you are adding smaller amounts regularly then something like this could be suitable.
Fidelity Index World Fund P Accumulation Key Statistics | GB00BJS8SJ34 | Fidelity

patchyX2

Are you happy for them to get the money at 18? 

I'm in a similar position to you, but I think I'd prefer to wait and see what their situation is when they turn 18 before they automatically get the money. If they're sensible and would put the money towards a house or education, then fine, but beer and toys... maybe not 

For that reason, I'm putting their money in my stocks and shares isa, but have invested in a different fund to my own, hence its easier to track. 

newbieni

PledgeX2 said:

Are you happy for them to get the money at 18? 

I'm in a similar position to you, but I think I'd prefer to wait and see what their situation is when they turn 18 before they automatically get the money. If they're sensible and would put the money towards a house or education, then fine, but beer and toys... maybe not 

For that reason, I'm putting their money in my stocks and shares isa, but have invested in a different fund to my own, hence its easier to track. 

I like that idea in terms of having better control over the funds, however I have two issues:

1. Worry about monies getting mixed up.
2. My own S&S ISA consists of Vanguard's Global Index fund, a global index fund is what I want to take out for my kids but assume I can't have three on the same platform.

cloud_dog

newbieni said:

PledgeX2 said:

Are you happy for them to get the money at 18? 

I'm in a similar position to you, but I think I'd prefer to wait and see what their situation is when they turn 18 before they automatically get the money. If they're sensible and would put the money towards a house or education, then fine, but beer and toys... maybe not 

For that reason, I'm putting their money in my stocks and shares isa, but have invested in a different fund to my own, hence its easier to track. 

I like that idea in terms of having better control over the funds, however I have two issues:

1. Worry about monies getting mixed up.
2. My own S&S ISA consists of Vanguard's Global Index fund, a global index fund is what I want to take out for my kids but assume I can't have three on the same platform.

Life is rarely black and white, all or nothing.

You could open the JISAs and contribute until it reaches a certain size that you feel is enough for a young adult, and then switch to investing in your name.

We did the above, but also when ours were about 15 or 16 we also started a cash savings JISA, with the idea that they could pith the cash savings up against the wall should they wish, but also that perhaps the S&S JISA should remain invested for a little later life, e.g. post Uni / consideration for using it in a LISA etc.  For us it worked out and they went along with the suggestion.

Albermarle

PledgeX2 said:

Are you happy for them to get the money at 18? 

I'm in a similar position to you, but I think I'd prefer to wait and see what their situation is when they turn 18 before they automatically get the money. If they're sensible and would put the money towards a house or education, then fine, but beer and toys... maybe not 

For that reason, I'm putting their money in my stocks and shares isa, but have invested in a different fund to my own, hence its easier to track. 

Blowing money at 18/19 is almost a right of passage, and can be a good lesson in that when its gone it is gone.
As @cloud_dog says a halfway house can be best with them getting some money at 18 but not all of it.

xylophone

Blowing money at 18/19 is almost a right of passage,

Wouldn't call it a right or even almost a right......   now "rite" ........ bit of a difference.... 

Albermarle

Yes, you are rite !