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.
