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Where to save for children’s uni fees
Comments
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Hi atush - did you keep it in your name, or put it into the childs?I saved into investment trust savings plans to send my 3 to university.
I used both Witan and F&C. You can isa or Jisa them, or leave them unwrapped.I've got a plan so cunning you could put a tail on it and call it a weasel.0 -
This applies to the OP also...Only difference being that ours are toddlers still and we are saving £200 a month per child.
My biggest concern is the £100 of interest per parent limit as all the cash is from us.
Don't really want a JISA as we want to be able to a) spend it earlier if we feel it's appropriate and b) only spend it how we wish not how they see fit at 18.
Jenn_ifer, you do realise that (based on what you have shared) the money you have accumulated appears to be in a bare trust for the child; the money belongs to the child; and is their responsibility at age 18 (in England).
I appreciate that this comes off as a little bit 'scaremongering' but if the child (18) chooses to blow the money on having a good time you have no control over that.
People really need to consider the potential implications of their actions. If you want a say/control over how the money is used you either need to go down the route of creating an appropriate trust (discretionary for example) or retain it under your own name; or some mixture.Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
Following with interest as I have spent the evening trying to find the best solution for exactly this.
Only difference being that ours are toddlers still and we are saving £200 a month per child.
My biggest concern is the £100 of interest per parent limit as all the cash is from us.
Don't really want a JISA as we want to be able to a) spend it earlier if we feel it's appropriate and b) only spend it how we wish not how they see fit at 18.
If you are planning for money you'll need in 10+ years then investments are really the way to go not cash savings. If you use a S&S ISA then you won't be subject to any income or capital limits other than the £20k per year investment limit.Remember the saying: if it looks too good to be true it almost certainly is.0 -
I am a little confused with this, as I have control over my son's savings account and pay in / withdraw money as I wish. I have not set up a trust nor retained it in my name. How is that working?This applies to the OP also...
Jenn_ifer, you do realise that (based on what you have shared) the money you have accumulated appears to be in a bare trust for the child; the money belongs to the child; and is their responsibility at age 18 (in England).
I appreciate that this comes off as a little bit 'scaremongering' but if the child (18) chooses to blow the money on having a good time you have no control over that.
People really need to consider the potential implications of their actions. If you want a say/control over how the money is used you either need to go down the route of creating an appropriate trust (discretionary for example) or retain it under your own name; or some mixture.I've got a plan so cunning you could put a tail on it and call it a weasel.0 -
I am a little confused with this, as I have control over my son's savings account and pay in / withdraw money as I wish. I have not set up a trust nor retained it in my name.
It must be one or the other.
If the money is being taxed as if it was the son's, then it is in bare trust and he is absolutely entitled to the capital at 18. As the trustee you are free to withdraw the money but it must be invested in another bare trust account.
If it is just your money, and taxed as your money, but mentally earmarked for him, then of course you can do what you want with it.0 -
i would not put this in the child's name as A JISA as they have full control at 18. As you have 6 years my inclination would be to open a stocks and shares isa alongside some regular cash savers in your name. Depending on stock market performance when they start uni you could either cash some units from the isa or withdraw from regular savers for first year.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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I started a 100% equity S&S ISA in my name when my eldest was 10 for the same reason as the OP. The way I saw it was, saving £100/month was better than saving nothing at all for their further education. Being in a S&S ISA meant that there was less chance of me accessing the funds (mind games). I am fully aware that I may not have as much money as I invested in 8 years time but something is more than £0. This was my personal attitude to the risks of S&Ss. I plan on continually investing in the S&S ISA throughout their time at Uni, removing lump sums from the ISA when they are required.
I must add that the OH and I also invest in S&S JISAs for them (originally CTFs) to do whatever they want when they turn 18.You should pay attention to the needs of the moment - otherwise there is no future. But to ignore the future is foolish - living solely for the moment leaves nothing for when the next moment arrives.0 -
So what are Children's Bank Accounts?Malthusian wrote: »It must be one or the other.
If the money is being taxed as if it was the son's, then it is in bare trust and he is absolutely entitled to the capital at 18. As the trustee you are free to withdraw the money but it must be invested in another bare trust account.
If it is just your money, and taxed as your money, but mentally earmarked for him, then of course you can do what you want with it.I've got a plan so cunning you could put a tail on it and call it a weasel.0 -
They are a type of financial bare trust account for a minor (under 18). Accounts like these may have a debit card for example as the child is older and more responsible in managing money/transactions.So what are Children's Bank Accounts?
I commented on another child/savings thread (I've added 'Bare Trust' for clarity):This is a critical consideration and often overlooked.
My DD is older than yours but we have...
1. Savings account in DD name (Bare Trust)
2. Stocks and shares CTF (forerunner of JISA)
3. Easy access account (for birthday/xmas gifts etc), in DD name (Bare Trust)
4. Investment account in OH name, which we control, allocated for DD
Basically accounts 1, 2, and 3 belong to our DD, account 4, where the majority of money is, belongs to us and is allocated to be used for the benefit of our DD.
Unsure if a CTF/JISA comes under the bare trust banner or if it has its own legal status?Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0
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