Child Turning 18 on 5 April... any savings tips?

sarahatthesea

Just that really. Could she open a LISA and catch this year's benefits? Anything else we should be doing last minute (totally on brand for me I'm afraid...)? I'm anxious that me not being particularly savvy and her being single focus on her A Levels might cost her some £££s down the line.

Thank you!

MEM62

How much money does she have to save? Lump sum or monthly? If the horizon for using the money is 10 years plus then you should be considering investments rather than savings.  Savings are good for shorter-term goals such as holidays or buying her next car etc.    

sarahatthesea

Thanks MEM62. Less than £10k, lump sum. Right now, it's mainly about missing any opportunities that turning 18 will close the door on.

Cus

Most people on here are more concerned about the teenager having the new legal access to the money and spending it all.  I don't know of anything that needs to be done as soon as they turn 18

boingy

Is it Ok that my first thought when you said she's turning 18 and asked how to save money was "chuck her out to earn her own living". You'd save a fortune...

But a proper answer is: no, nothing urgent to be done unless you fancy the challenge of opening and funding a LISA on the very last day of the tax year, especially as it's a Saturday! So, she can focus on those A Levels for now. Plenty of time for savings after that. 

As to whether a LISA is appropriate for her is a different discussion. At present you can only use one for a property up to £450K, which could be quite limiting in future years so it depends on the "life plan", which most 18 year olds don't really have!

nottsphil

Is there any chance that in 53 weeks time, she will have more in savings than the annual maximum LISA deposit? If not, then there is no urgency to open one before 6 April.
That is presuming those allowances aren't reduced in the Budget for the current year!