Saving for child's future

robaber

Hello 

My wife and I have a 9 year old. When they were born, we started putting their Child Benefit aside, in a savings account. 

We intended this to be money for school trips and birthday parties. 

A few years ago we became a bit more ambitious with this and decided to try to build up the amount, to help with going to university, a car, a gap year or towards a house deposit. 

I used a University cost calculator and based on our household income we will be expected to contribute £15-20,000, to their living costs during University. 

So we started putting this money annually, into a 1 year fixed savings account.

Last year, we opened a Junior stocks and Shares ISA for them and put some money into this. There is only one fund in the account, which is a target date fund. The date is for when they turn 17. 

We also started putting money into a target date fund, in my Stocks and Shares ISA.

This is slightly more expensive, as I have to pay a platform free on my funds. Whereas the Junior ISA is doesn't charge a platform fee.  However, we wanted the flexibility if being able to access the funds and the control of the money, for them, when they turn 18. 

When saved, I hope to have around £10,000 cash and £10,000 shares, for them. 

At our current rate of saving, this should in 3-4 years. 

If there anything I am missing? 

Any suggestions of alternative options?

FIREmenow

Sounds like you are on track, my only thought is that a lot of the money is legally theirs - how would you feel if they decide at 18 to spend it all on something you don't approve of?

Our 60th birthdays line up nicely with our child being in their twenties, so as well as putting some money in a JISA, we are also earmarking some of the money in our LISAs for that time. It depends if the dates line up, and you are benefiting from the government top up.

Albermarle

robaber said:

Hello 

My wife and I have a 9 year old. When they were born, we started putting their Child Benefit aside, in a savings account. 

We intended this to be money for school trips and birthday parties. 

A few years ago we became a bit more ambitious with this and decided to try to build up the amount, to help with going to university, a car, a gap year or towards a house deposit. 

I used a University cost calculator and based on our household income we will be expected to contribute £15-20,000, to their living costs during University. 

So we started putting this money annually, into a 1 year fixed savings account.

Last year, we opened a Junior stocks and Shares ISA for them and put some money into this. There is only one fund in the account, which is a target date fund. The date is for when they turn 17. 

We also started putting money into a target date fund, in my Stocks and Shares ISA.

This is slightly more expensive, as I have to pay a platform free on my funds. Whereas the Junior ISA is doesn't charge a platform fee.  However, we wanted the flexibility if being able to access the funds and the control of the money, for them, when they turn 18. 

When saved, I hope to have around £10,000 cash and £10,000 shares, for them. 

At our current rate of saving, this should in 3-4 years. 

If there anything I am missing? 

Any suggestions of alternative options?

Hopefully you are not neglecting your own finances. Although it is good for young adults to have some access to spare cash, it is just as important that their parents are financially sound as they get older. Good pension provision, small mortgage etc .
I am sure you are being sensible, but we have seen posters filling up JISA's etc. and neglecting their own finances.