Evening out children's savings accounts  help me with maths!
hieveryone
Posts: 3,827
Forumite
Hello all,
Today I got to thinking about my children's savings accounts. Over the years I've put away bits and pieces for them but I want to target that now to make sure they have a decent lump sum when they hit 18.
Currently, they each have £1500 in individual accounts.
One child is 96 months old and the other is 48 months old. (I've written it in months just for ease!)
If I want to target £10,000 by the time they are 18 (216 months), how do I even up the accounts so that I can input the same each month to each account to hit the target? I don't mind moving money from one child's account to the other to make it even up month wise rather than them both having the same amount.
Help a girl out, my math just ain't mathing today.
Thank you!
Today I got to thinking about my children's savings accounts. Over the years I've put away bits and pieces for them but I want to target that now to make sure they have a decent lump sum when they hit 18.
Currently, they each have £1500 in individual accounts.
One child is 96 months old and the other is 48 months old. (I've written it in months just for ease!)
If I want to target £10,000 by the time they are 18 (216 months), how do I even up the accounts so that I can input the same each month to each account to hit the target? I don't mind moving money from one child's account to the other to make it even up month wise rather than them both having the same amount.
Help a girl out, my math just ain't mathing today.
Thank you!
Bought is to buy. Brought is to bring.
0
Comments

If you need to accumulate £8500 in each account, and have 21696=120 months remaining for one and 21648=168 months for the other, then the monthly amounts would need to be 8500/120=£70.83 and 8500/168=£50.60.
That total of £121.43 can be split in whichever proportions you like if you're happy to juggle between accounts....1 
:smile: said:If you need to accumulate £8500 in each account, and have 21696=120 months remaining for one and 21648=168 months for the other, then the monthly amounts would need to be 8500/120=£70.83 and 8500/168=£50.60.
That total of £121.43 can be split in whichever proportions you like if you're happy to juggle between accounts....
Bought is to buy. Brought is to bring.0 
If you receive child benefit and can afford it split the total amount and save that.
1 
daveyjp said:If you receive child benefit and can afford it split the total amount and save that.
Bought is to buy. Brought is to bring.0 
It did seem odd that you were referring to 'evening out' accounts that were already even!
I should have added that in order to model things accurately, the interest rate should be factored in, assuming that you're using accounts that pay worthwhile interest?1 
eskbanker said:It did seem odd that you were referring to 'evening out' accounts that were already even!
I should have added that in order to model things accurately, the interest rate should be factored in, assuming that you're using accounts that pay worthwhile interest?
What I meant was, assuming I'd started saving from the month each of them was born, they would have different amounts by now (as one is double the age of the other). So I started to think, should I even them out now at this stage, so that each month, they both get the same input from now on.
Bought is to buy. Brought is to bring.0 
You say that each child is to access the cash at age 18.
You say that each has an existing (presumably child savings) account.
You say that you (parent) are providing the cash.
You do not say that the accounts in question are JISAs.
You could open a JISA for each child.
https://www.gov.uk/juniorindividualsavingsaccounts
The best JISA interest rate generally available (not requiring residence in a certain area) is offered by Coventry Building Society (4.95%).
Once opened, you could transfer the £1500 into each account.
You could then add up to £7,500 to each account in this tax year if you wished and up to £9000 to each account in subsequent tax years.
1 
hieveryone said:eskbanker said:It did seem odd that you were referring to 'evening out' accounts that were already even!
I should have added that in order to model things accurately, the interest rate should be factored in, assuming that you're using accounts that pay worthwhile interest?
What I meant was, assuming I'd started saving from the month each of them was born, they would have different amounts by now (as one is double the age of the other). So I started to think, should I even them out now at this stage, so that each month, they both get the same input from now on.1 
eskbanker said:hieveryone said:eskbanker said:It did seem odd that you were referring to 'evening out' accounts that were already even!
I should have added that in order to model things accurately, the interest rate should be factored in, assuming that you're using accounts that pay worthwhile interest?
What I meant was, assuming I'd started saving from the month each of them was born, they would have different amounts by now (as one is double the age of the other). So I started to think, should I even them out now at this stage, so that each month, they both get the same input from now on.
Bought is to buy. Brought is to bring.0 
hieveryone said:eskbanker said:hieveryone said:0
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