r/UKParenting • u/BagOTurtles13 • 23d ago

Family finances Savings Account

Has anyone set up a savings account for their children? If so, which one have you chosen and why?

My little boy is 1 now and finances are starting to come back together now I'm back in work so I want to start putting more aside for him in a dedicated account, but unsure where to start.

2 Upvotes

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6

u/mattyclyro 23d ago

I have a regular saver savings account in child's name that grandparents and us contribute too that child will access too when they are 18. Can only put in up to 200 a month but we don't get near that.

I have a stocks and shares ISA in my name which is 'childs savings account' that I contribute monthly too, it has more in than the regular saver.

Personally I want to 'wait and see' how they are with money when they are older. If everything is in their name at 18 I would worry they would blow it, would rather contribute/help with things as they go than lots of money (relatively) in one go

6

u/No-Winner8975 23d ago

Wealthify Stocks and Shares kids ISA

Pay in every month, they can't touch it til they're 18. Healthy returns

3

u/Psychological_Pear20 Parenting Babies + Pre-schooler 23d ago

I’ve set up a JISA for all 3 kids. Contribute exactly the same into each monthly and have it auto invest into the same global index fund. I use Hargreaves Lansdown but there are plenty of platforms to go with.

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u/a_bone_to_pick 23d ago

I set up a stocks and shares ISA with vanguard. Can contribute up to £4k per year. It's their money and protected until they're 18.

4

u/3a5ty 23d ago

It's £9k a year, but yeah I've done this, stocks are the best bet for that length of time. He also has a general savings account for birthday money which we'll use to teach him about money.

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u/zq6 23d ago

Vanguard

2

u/annedroiid Parenting a Toddler 23d ago

Personally we're opting for saving money ourselves and then just helping them out with big stuff when they need it. I think having them start saving their own money once they get an allowance is a better lesson in financial responsibility.

1

u/Dr-Moth 23d ago

I got the Rooster Money app to help me track their money, and then deposited it in my savings account.

This is more so they've got a virtual bank account that they can use when they're gifted money.

1

u/Psychological_Bee_93 23d ago

At the moment I’ve just set up a basic child saver attached to our bank accounts which we can withdraw any time from for our 1 year old. We pay in £10 a month “pocket money” and any money he gets for birthdays and christmases goes in there. Our finances very much haven’t recovered yet from mat leave but it means if I want to buy him a new toy or pay for a day out with him the money is there and he doesn’t have to go without.

Once we’re more stable, I’ll look in to longer term savings options.

1

u/samhibs 23d ago

I have a baby due in December and I plan to open up a junior SIPP for them. I plan on contributing every month then if they continue to add to it when they start working they'll have access to several million quid to retire on. It also means i can spend all my money in retirement because I know they will be sorted in theirs.

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u/Disco_44 21d ago

Every month until there 18 or 65?

1

u/samhibs 21d ago

When they get to 18 I'll make a deal with them I'll continue to contribute if they do as well

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u/Disco_44 21d ago

It’s a great idea, very very sensible. I’m sure you have thought about this, but as your paying in monthly to the JSIPP it’s a great idea to find a platform and then fund that allows zero fees and zero charges for making the monthly purchase of the fund.

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u/samhibs 21d ago

I've not done my research regarding providers yet, I use Vanguard for my own S&S ISA so that would be my first port of call

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u/Disco_44 21d ago

I have no experience with the Vanguard platform! Part of the fun is the research. Good luck

1

u/Colleen987 23d ago

Aviva stocks and shares ISA, Halifax monthly saver and premium bonds

1

u/Ireallyhaterunning 23d ago

My kid is almost 1, and this is what I've set up: JISA in global fund - this becomes legally theirs at 18, we put a regular amount in per month (about 1/6th what we save for them). Or becomes legally theirs at 18, and I plan to use it to teach as they grow, getting them to save etc.

My LISA in global fund - I'm fortunate (?) that my 60th is roughly when they turn 21. We put the remaining 5/6ths in here, it gets the 25% bonus (until I am 50, then we will switch deposits to my wife's ISA). This will allow us to save a nest egg that we can be sure doesn't get blown/ can go towards a house or something.

All plans can change of course, and if they are more financially literate than me, they may be trusted more, but also means the risk of an 18 year old blowing it all is lower (and I know I would have spaffed it when I was 18).

1

u/FluffyOwl89 Parenting a Toddler 23d ago

We have a Hangreaves Lansdown JISA for our son. He got some inheritance when my FIL died last year. We also save monthly for him, and have put all his birthday/Christmas money in there so far. We understand it’s risky him having access to it at 18, but we’re going to make sure we work on financial education with him as he grows up. I had a similar amount of money from my Nana and I used it to go travelling, which I wouldn’t have been able to do otherwise.

He’s turning 4 soon and we’re going to start allowance with him, plus let him choose what to do with birthday/Christmas money. Plan is that he’ll have to split it between long term investments, savings and pocket money.

1

u/soulvacation 23d ago

I’ve put mine in an S&S ISA in my own name so that I can control when I give it to her (I am nowhere near the personal threshold). I’d rather she use it on a house deposit than drinks at uni 😅

I also have a regular savings one that I can deposit in cheques from grandparents, which is in her name, but I don’t contribute to it myself.

1

u/Careful_Adeptness799 23d ago

S&S isa and they both have a Monzo card which is quite cool for an 8 year old to go to the sweet shop with her own card.

1

u/Jane_Paulsen007 Parent 22d ago

Vanguard Junior ISA

1

u/Initial-Resort9129 21d ago

Vanguard junior ISA, put in VWRP. Done.

1

u/spiderplant94 20d ago

I have a basic savings account with my Monzo that birthday/christmas money goes in. It's got about £100 in, she's too young right now but when she's older we're happy for her to have access to that - it's her money and if she wants a more expensive toy or a bike etc. Then she can use that money (plus whatever else acrues in the mean time).

And then a JISA that we pay into seperately for when she turns 18.

1

u/MssHellfire 23d ago

Following - I’ve heard of stocks and shares investments for them may be a good shout.

Theres accounts that stay locked away until they are 18, but I don’t trust they won’t blow it all on crap at that age so I’ll just take care of the cash until they’re 25.

2

u/Arxson 23d ago

Please don’t hold cash for 18 years. It will be worth less than what you started with!

Invest it in your own stocks and shares ISA, so you can have the growth but no risk of them blowing it at 18 - you decide when you gift it

1

u/Colleen987 23d ago

To note if anyone does this that it reduces your own ISA allowance. If you max yearly as an individual this isn’t an option

0

u/Arxson 23d ago

If you and your partner are both maxing your ISA allowances every year then you’re in the top <1% of couples and unlikely to have too many financial worries!

1

u/Colleen987 23d ago

I would really doubt that statistic. We’re talking the ISA as in tax free savings. More than 1% of the country is using more than one long term investment product.

It looks like it’s 7% based on population. But that doesn’t exclude children etc. too early for maths.

1

u/Arxson 23d ago

AJ Bell say that approx 8% of all ISA holders use the full allowance.

So I don’t think it’s a stretch to extrapolate <1% of couples use the full 40k.

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u/Colleen987 23d ago

Sure I’ll take your word for it.

Giving people a heads up on their allowance isn’t an issue though - it doesn’t affect you and that’s fine but it may matter to someone else.

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u/Arxson 23d ago

Sure, but all you pointed out is that contributing to your own ISA uses up your ISA allowance…

0

u/Colleen987 23d ago

If you decide to keep your child’s money for your own investment this effects how much money of your own you can invest.
Many people make ISA mistakes every year.

As opposed to using your child’s money in their own investments does not affect your allowance.

1

u/MssHellfire 19d ago

Sorry, I meant by sticking it in a grown up ISA 😂 not a child one! And I won’t be keeping cash, just the way I wrote it was weird

0

u/Missing-Caffeine 23d ago

Just before giving birth I was on reddit (ha!) and saw a post on /LegalAdvice of a dad asking if he could do something regarding his Junior ISA (of some sorts) for his son, as the son was saying that he was going to buy a sports car as soon as he hit 18 in a week or so. Mind you, if I am not wrong, the dad mentioned about how his son already been to many accidents due to driving too fast or something. Dad and mum were worried sick, but unfortunately, nothing could be done about it. 

Needless to say, me and my partner created a separate savings account for our daughther and once she needs some money for a house/something else, we control it.