Best way to save for my 3 children
Options
Comments
-
This is basically what my wife and I are doing for our two kids. Any money they get for Christmas or birthdays goes into a cash savings account in there names. They can do what they want with this when they're old enough to access it.
Perhaps I'm old fashioned, but I'd also recommend taking them along to open their own savings account when they're old enough - I still remember my mum and dad taking me along to the building society to open my very own savings account with some birthday money when I was seven or eight and being given the pass book to look after. Fifty odd years later I can remember it like it was yesterday and it started me onto the savings road.0 -
Quick read whilst baby naps!! .... Just been reading the terms and conditions of vanguard and looks like minimum £100/month for monthly saver so guessing that rules all their accounts out??
With 3 children to save for £50/month is about all I can manage at the moment
No, it doesn't rule them out. You don't have to make a monthly deposit. If you do want to then the minimum is £100, but you can just make ad hoc deposits as and when it suits, as long as you open the account with an initial investment of £500. As you have been saving £50 a month for them for most of their lives then you should have the necessary £500 each (and more), so you can still invest through Vanguard and then just add to the investment as you want.0 -
p00hsticks wrote: »Perhaps I'm old fashioned, but I'd also recommend taking them along to open their own savings account when they're old enough - I still remember my mum and dad taking me along to the building society to open my very own savings account with some birthday money when I was seven or eight and being given the pass book to look after. Fifty odd years later I can remember it like it was yesterday and it started me onto the savings road.
Very true! I can remember this too. I loved looking at my passbook every now and again. Funnily enough I just asked my husband (who is terrible with money!) if he could remember and he said vaguely!!0 -
Use Children's Regular Savers. They pay good rates but low caps.
Homesdale Building Society do a Young Savers account, 0-23 y/o, paying 2.25% and when they are 23 matures into a 2% Home Savers account. Worth looking at.
My children have Halifax Regular Savers accounts which you can currently open online with a rate of 4.5 per cent.
At the end of the year they convert to Young Savers accounts (currently 2 per cent I think) but you could then move the money elsewhere e.g. into an ISA or S&S.0 -
Thanks for all comments.
Have narrowed down to vanguard junior isa. The wording on their page is confusing but I have cleared up that the minimum £100 regular payment only applies when opening the accounts. If choose to open the
accounts with a lump sum greater than £500 then you are definitely able to set up a regular payment of £50.
Now the next dilemma is deciding which fund! So many choose from. From my limited reading this week I am looking at life strategy 80/20 with a risk score of 4. Any thoughts on this? Has looked at the retirement funds for 2030 and 2035 but the end dates don!!!8217;t quite work out with current kids ages. Either expire a little too early or too late.0 -
Should also add going to keep open the current regular saver accounts with Halifax/bos for small savings - Xmas, bdays etc0
-
Mine are in VLS100, it's a long time since it's going to be needed and I want to give it the best possible opportunity to grow.0
-
Thanks for all comments.
Have narrowed down to vanguard junior isa. The wording on their page is confusing but I have cleared up that the minimum £100 regular payment only applies when opening the accounts. If choose to open the
accounts with a lump sum greater than £500 then you are definitely able to set up a regular payment of £50.
Now the next dilemma is deciding which fund! So many choose from. From my limited reading this week I am looking at life strategy 80/20 with a risk score of 4. Any thoughts on this? Has looked at the retirement funds for 2030 and 2035 but the end dates don!!!8217;t quite work out with current kids ages. Either expire a little too early or too late.
VLS80 is a reasonable choice given the length of time before the money is (potentially) needed. You could consider the VLS100, but this will be more volatile than VLS80. Either of those two funds are reasonable choices, it depends on how much risk you can tolerate.
Sorry not to be able to give you much more to go on, but I don't think you will make a bad choice with either, as long as you are prepared for the falls in value when they come and don't get too stressed about them.
The Target Retirement funds don't have to match their 18th birthdays exactly, so you don't need to rule them out for that reason. However, if reducing risk is something you would like to do, as they near their 18th birthdays, you could still do this with LifeStrategy funds by switching down from say, 100 to 80 and then to 60 in stages.0 -
People at MSE tend to sneer at Friendly Society policies like this but I must say we were pleased with the one we opened for one nipper. So was she: she's invested with them since.
https://www.forestersfriendlysociety.co.uk/saving-for-children/
Another possibility would be Investment Trust savings schemes or JISAs: scroll down to pages 45 and 46.
https://www.theaic.co.uk/sites/default/files/statistics/attachment/AICStats31Dec17.pdfFree the dunston one next time too.0 -
Set each one of them up with a pension, they will never need to worry about that aspect ever in their lifetime and they can't access the dosh till they're 55+0
This discussion has been closed.
Categories
- All Categories
- 343.5K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.9K Spending & Discounts
- 235.6K Work, Benefits & Business
- 608.5K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards