Monday, 19 August 2013

Five Ways to Save For Your Child's Future...

five ways to save for your child's future


I often think about my childrens' future. I think about what they may be when they grow up, about their first relationships, their first jobs, whether they will go to university or travel the world, maybe both?

I have no expectations other than wanting them to be happy, to follow their dreams.

I wonder about becoming a grandparent, watching my own children take on the Mummy and Daddy roles that they so love to 'play'.

Whenever I think about this I also worry about money. I don't want money to be the defining factor in what they do with their lives but I don't want them to be held back by a lack of it either.

Although they will always be my babies, I know that the time will come when they will fly the nest, when they won't need me to protect them from the big wide world any longer and although at the moment I look upon that day with fear and trepidation I also want to prepare for it, and they only way I know of doing that is to make sure that they have some financial security when it comes.

I want to provide them with something. It won't be a lot but could help them live their dreams, maybe pay towards tuition at University, enable them to see amazing places around the world or even contribute towards a deposit on the house that they will bring my grandchildren up in.

Whatever they would spend it on I need to decide how exactly I am going to save for my childrens' future. I've been looking in to the different options out there and have put together a selection of ways to build up a next egg for your child...


1. If you have a child who was born before September 2002 or after January 2011, you can start a Junior ISA for them. The Sippdeal Junior ISA offers a way of saving for your child's future that is free from tax and allows anyone to pay money in, up to a limit of £3,720 each tax year. This makes it ideal for other family members to contribute too. You can save from £25 a a month using their Regular Investment Service. and if you decide to invest in funds you will receive an annual cash bonus of up to 0.5%. The child will then be able to access the savings once they turn 18.

2. If your child does not fit into the age brackets above then you will have been sent a voucher to set up a Child Trust Fund (CTF) when they were born. As well as this initial bonus which would have varied depending on when your child was born (my son was sent £500 where as my daughter got £50)  you can also add your own money to build it up for your childs' 18th birthday when they will be able to access it. These accounts are also free from both income and capital gains tax and again have a limit of £3,720 each tax year. MSE has a useful guide on choosing the right CTF.

3. You may want to save regularly but for your child's future but also want them to have access to it before they are 18. What if they have the opportunity to travel or find their independence before they are 'officailly' an adult? There are savings accounts out there that will allow you to pay in regularly but will give your child access before their 18th Birthday.

4. What if you want to put a lump sum away for them? Have you been left some money, remortgaged or sold a family heirloom?! A savings Bond is a good way of putting away a set amount without having to add regular contributions. Fixed rate bonds will tend to pay higher interest rates and the terms start from 5 years, allowing your child to access the funds after this time.

5. Encourage your child to save. Teach your children the value of money from a young age and whatever and however you do decide to save for them it will be spent wisely and when needed rather than squandered as soon as they turn 18 and can withdraw it!

So there are some ideas on saving for your child's future, Do you already have an account for your child? What would you recommend? I would love to hear your thoughts.


This post was sponsored by Sippdeal.


15 comments:

  1. My mum told me if you don't have enough money to buy something. Then don't consider credit. (apart from a mortgage). You need to save up for it.@jessws2011

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  2. I'd love to save more for the girls' future. it seems to be one of those priorities that gets missed. thanks for the info here. I wasn't aware of the Sippdeal Junior ISA :)

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  3. We save in a child trust but also a savings account we also teach both of them to save for small things, they are 3 and 4 and get pom poms for good behaviour a full jar =£1 toward a new toy etc its frustrating helping them inderstand costs at times as they are so young but they get it most of the time

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  4. My older 2 have CTF's which we pay into every month, but my youngest was born this year so doesn't get the CTF voucher. We have put the same amount into an ISA for him instead.

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  5. I think the best approach mix of all the options. We have child trust funds or an isa for each, to which we have a direct debit. Then they each have a savings account that we put birthday money etc in.

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  6. my father in law set up savings accounts for all of my children and all our families put money in them throughout the year. x

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  7. I've really got to get around to opening Harry's account. Emmy had one from weeks old however I just don't seem to find the time to open onen for Harry :( must do next week I think

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  8. My first has a trust fund but I feel bad for the other two that they don't & silk be working towards matching that for them at some point x

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  9. We did so well saving for the oldest, not so well for the middle child and as of yet nothing has been put away for the youngest at the moment I cant afford it and try to think about now and not the future. I was never giving any savings etc from my own mum and its done me no harm just meant I paid my own way in the world!

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  10. We have been saving since they were all born just £20 per month each, so when they are 18, they can buy a car or go on holiday! If you can afford it then why not!

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  11. My oldest has a savings account. I put all birthday and christmas money in it and she is given pennies by relatives in her money boxes and each time its filled that gets put in the bank too. shes not old enough to understand money at the moment and has enough toys and clothes so prefer to save everything she gets for the future. An account for my son is on my to do list.

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  12. i have a savings account for my son in england and his grandparents opened one up for him back in germany and he also got a child trust fund too.

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  13. This is a useful post. I've just been looking at saving options for my daughter - think I'm going to go for a junior ISA.

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  14. I really must open a mini isa for our youngest monkey! Feel bad his big brother has savings and he doesn't!

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  15. all good ideas, i save in a junior ISA for my kids

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