Best thing to do for kids

topyam

Have young kids between 10 and 14

Would like to start putting some money in for them in the future. Leaving it so it grows really.

Thinking of a ISA each for them. Put in £1000 each a year maybe.
Disadvantage i can see is they might blow it when they get access..

Or a SIPP... 

The big benefit being that the govt adds £.
Disadvantage being they can't get it for ages.

I have maxed my own ISA and SIPP. I don't work, so SIPP was £2880. So growing the money in my name and passing on is another consideration.

Any advice? Just feel like by not doing anything to date, I've been poor, and want to get the ball rolling on something for them. 

Wish there was a "what you need to do money wise for your kids" guide!!!

El_Torro

A Junior ISA is usually the way to go, either Cash or Stocks & Shares. They can do what they want with the money once they turn 18 though.

As you say the problem with a SIPP is that it will be a long time before they can access it. There will be a lot of potential expenses between now and then. 


You seem to have outlined the most common options so I'm not sure what more we can tell you. If you're concerned about them blowing the money irresponsibly then I guess keeping the money in your name is the best option.

Uriziel

Kids these days are hooked on the internet and many of them go on websites where it is acceptable to send money to content creators as their names will be called out in a video which makes the children very very happy. There is a good chance the second they have access to it they will start doing just that because they feel they are in a relationship with a stranger that makes videos. It's your job as your parent to teach them that this is bad and that they need to save money, not give it away.

cantbelieveit23

ISA, yes.  If you are not happy for them to have control at 18, open in your name, assuming you are not already maxing your allowance.  You could have a conversation with them, explaining what you intend to do, e.g. give them an age at which they would have full control, and when you might be prepared to let them have access to some with good reason?
I'm sure you would have thought about how you insure that both have the same amount when they reach the age you choose: 18, 21 or otherwise.

MX5huggy

Was the 14 year old born before 02/01/2011? Is so they have Child Trust Fund (if UK born), they can’t have JISA as well. You can transfer the CTF to a JISA if you want. 

topyam

14 year old was born on 01/01/11
I moved the ctf to a cash isa ages ago but it hasn't made anything tbh.

I have maxed my ISA out this year. 
A cash isa.
I think I will have a stocks and shares isa next year and max it out again.
Maybe I use that for them?
I just feel then that I am not using the benefits of the jisa or sipp options....

I struggle with how to make it fair for all as I won't be starting them at the same age.

I have left it very late to be thinking about it.

Only really started thinking about all this since my husband died suddenly this year and i have had to get £ in some sort of decent order, and think more about the future.

refluxer

topyam said:

14 year old was born on 01/01/11
I moved the ctf to a cash isa ages ago but it hasn't made anything tbh.

This means that you already have a Junior Cash ISA for your 14 year-old, so start by finding out who it's with and what the interest rate is.

It should have earned some interest (you may have a passbook that needs updating as most JISAs aren't visible online), but you can transfer it to an alternative JISA provider if the rate isn't competitive. There is a list of the top cash JISA rates here.

topyam said:

I have left it very late to be thinking about it.

Only really started thinking about all this since my husband died suddenly this year and i have had to get £ in some sort of decent order, and think more about the future.

Sorry for your loss and don't be too hard on yourself - you're doing the right thing by addressing your finances now.

B0bbyEwing

I put away in a mixture of a SIPP & JISA for my niece. 

I started thinking about retirement late at 28 & even then it was only small amounts for years while I saved for a house. Retirement, pensions & the like were 'for old people'. I wish there was compulsory education on this. So the SIPP is to give them a step up. 

There's the obvious risk with the JISA that I may be better peeing it down a drain right now myself. That's why I'm hoping we can get her to be financially savvy young. Maybe it'll happen, maybe it wont.

Like yourself, I was considering putting the money aside but in my name & handing over at such a time they can show they're not going to throw it away on nights out etc but I've taken the gamble against that.