Saving for children

JimLad

Personally, im saving for myself to help my kids in the future, rather than saving for them if that makes sense.

I have a S&S ISA with Trading 212 and ive started a separate "PIE" (just a little virtual container within the ISA) called "KIDS" and i pay in £100pm. Its invested in VUAG (A S&P 500 index fund). I started it 6 years ago when my first was born and there is now just under 15k in it.

You have to be disciplined though as you have full access to this money as its in your name.

Andme1

xylophone said:

youre then beholden to current interest rates without the option of moving to a better product down the line. 

It is possible to move from one JISA product to another

Best cash JISA generally available at the moment  is from Coventry BS,

so I'm worried Im a bit late to the sips party 

Could you explain? I am assuming that you do not mean a pension for your child?

Yes I do mean a junior pension fund but everything I've read about them suggests starting them from birth to get the most out of it (I realise that's the same for any investment, the sooner the better, but particularly for these) 

With regards to being beholden to the interest rates, once the money is in a JISA I can't move it to a better performing product, it has to remain in a JISA although I know I can move between providers of those as required for best rates. 

I think because it's for my children (and it's potentially untouchable for the next 14 years or so) it feels like I need to make the very best decision. I don't agonise nearly so much over my own savings...a quick search for best rates, transfer/set up standing order, job done.

Albermarle

Andme1 said:

xylophone said:

youre then beholden to current interest rates without the option of moving to a better product down the line. 

It is possible to move from one JISA product to another

Best cash JISA generally available at the moment  is from Coventry BS,

so I'm worried Im a bit late to the sips party 

Could you explain? I am assuming that you do not mean a pension for your child?

Yes I do mean a junior pension fund but everything I've read about them suggests starting them from birth to get the most out of it (I realise that's the same for any investment, the sooner the better, but particularly for these) A SIPP would not be able to be accessed by them for over 50 years, so the fact they have missed out a couple of years is neither here nor there. 

With regards to being beholden to the interest rates, once the money is in a JISA I can't move it to a better performing product, it has to remain in a JISA although I know I can move between providers of those as required for best rates. Many replies recommended a Stocks and Shares JISA, so interest rates would not be relevant in that case. Over 14 years it is highly likely that investments will outperform cash savings.

I think because it's for my children (and it's potentially untouchable for the next 14 years or so) it feels like I need to make the very best decision. I don't agonise nearly so much over my own savings...a quick search for best rates, transfer/set up standing order, job done.

Regarding pensions for kids, there is some variance of opinion on them.
On one side you get some tax advantages and over 50+ years it should grow quite nicely.
However the other side is that money may well be more useful for them at 18 +,( car , house deposit, UNi money etc)  rather than tied up in a pension for another 40 years, at which point they may well have a big pension anyway.

xylophone

everything I've read about them suggests starting them from birth to get the most out of it

Both your children are under five years old.

As the law stands, they would not be able to access these pensions for well over fifty years.......

Bigwheels1111

Over the last year there have been over one hundred of these threads.
Very few of them mention, teaching you kids about money, ie don’t spend it all the day you get it.
My niece got 3k on her 18th birthday.
That lasted less than a month.

I think it’s great saving for your kids.
My parents were divorced and did nothing like that for us.
But my dad lent me money when I needed it, I then paid it back interest free.
Kept any spare cash I gave him, as savings.
I could not save as such, if I could see it I could find a way to spend it.
His option work I had a 15% deposit for my house in 2000, what my dad did was match it.
So 30% deposit.
He taught me the real meaning of money and it worth, a far more valuable lesson.
Matching what I had saved was amazing.

Sg28

Andme1 said:

They're almost 4 and 1 so I'm worried Im a bit late to the sips party for at least the eldest but s&s JISAs could be ok. They might negate my concern about being unable to access them as youre then beholden to current interest rates without the option of moving to a better product down the line. 

Without a crystal ball I don't want to do wrong for them 

Your kids starting a sipp at 40 I wouldnt say is late to the party. Starting it at 4 is getting to the party long before most people even know theres going to be party!