Children’s saving accounts

[Stere]

Know someone who bought a few  bitcoin near the  start of it,  made some crazy money at current value

 

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Still seems totally bizzare to me and wouldn't be surprised if the whole thing collaspes sometime like tulip mania  etc.

 

Suppose the clever thing is to sell  before that happens

 

Lastest thing is crypto artworks

[trigger_andy]

14 hours ago, Lloyd Jerrey said:

What do people use to save for their children?

Gold.

 

When I was 18 or 21 (cant remember now) I was given a small figure from my Grandfather. It was the accumulation of the original £500 he put into an account when I was born in 1979. Had he bought gold it would have been worth £5000 now which is significantly more than what I did (gratefully) receive. 

 

Its what I put aside for the kids. Not much but some Gold Doubloons is far more pleasurable to look at and hold than a bank statement.  

[topchippyles]

4 hours ago, Unframed Dave said:

Based on my own winnings, you'd get around 0 - 25 a month. 

 

The actual return is 1%, but luck is in the mix. So far this year, I'm way ahead of that so conversely someone else is way down. 

 

Dave 

I checked this morning dave and rate is 0.02% so premium bonds it is by the looks

[Steven P]

Premium Bonds -should- give you in prizes just a bit less than their advertised interest rates, but only in £25 lumps... so if you have £100 chances are the kids will never see a prize before they are 18, £1000 and they might get some, and the larger amounts should get you a decent return with the chance to win the £1m. You can set up a regular direct debit for them can't you and reinvest the winnings so over time could build up nicely.

 

My boys have a building society account - instant access - just in case, plus a junior ISA each which had a better interest rate. If I had enough spare each month I look at a small private pension - sounds odd but when they get to 60 their lives should be sorted and it might be enough to let them retire a year early (rather than blowing it all on fast cars and beer).

 

Long term shares out perform bank accounts. I went easy - went to the bank with a couple of cheques and said "Account for the boys" rather than slightly trickier shares

[Unframed Dave]

13 minutes ago, Steven P said:

Premium Bonds -should- give you in prizes just a bit less than their advertised interest rates, but only in £25 lumps... so if you have £100 chances are the kids will never see a prize before they are 18, £1000 and they might get some, and the larger amounts should get you a decent return with the chance to win the £1m. You can set up a regular direct debit for them can't you and reinvest the winnings so over time could build up nicely.

 

My boys have a building society account - instant access - just in case, plus a junior ISA each which had a better interest rate. If I had enough spare each month I look at a small private pension - sounds odd but when they get to 60 their lives should be sorted and it might be enough to let them retire a year early (rather than blowing it all on fast cars and beer).

 

Long term shares out perform bank accounts. I went easy - went to the bank with a couple of cheques and said "Account for the boys" rather than slightly trickier shares

We started to pay some into pensions for our kids a while back. Like you say, it builds up over time. That and the 25% the government gives you, makes it unbeatable as a sensible long term investment. 

 

I am in no way qualified to give financial advice, this is only my opinion. 

[spudulike]

Good subject this and congratulate you on sorting it out and hope your ethic flows down to your kids through their lives.

20 years is a good long time to save money over and compound growth is your friend.

Compound growth is where you re-invest your earnings through dividends, interest or whatever and it increases the pot so has a much stronger impact than taking an income.

I would stick the £4K in an equity ISA as they are a great way of tax free saving, the money going in may be taxed but when you have a good large pot, you can take money out with no tax implications.

A decent ISA should be able to double its value every 7 years so in 21 years you should be able to double your £4k and double that then double that in the 21years period. There are no guarantees to this as equity can go up or down but long term, it makes a lot of sense. 

You may like to start in relatively safe European and UK funds but as they get bigger, look at China, Japan, Tech and North American funds. ISAs or its forerunner PEPs were predominantly UK based funds but that has now expanded. 

One caveat to this is that equity has had a long bull run so you could wait a bit and invest if you see a major decline in share price but.....you have to be in it to see the growth over time!

Personally I would avoid any funds managed by banks etc. Do your research, select a fund and invest through a platform such as Interactive Investor as they charge very low administration fees but they will NOT advise you.

My late father did exactly this for my nieces and £1000 grew to £6k in under 18 years....work it out!!!

[Mick Dempsey]

I was with an old eccentric client quoting a big stump grinding job 

last week.

He was moaning about the price and saying he’d lost 300k on the stock market (just banter you understand) and I should trim the price for his reduced budget.

 

I told him that I didn’t put my money in the stock market, I bought a stump grinder.

That tickled the old bastard.

(Didn’t get the job though)

Edited March 31, 2021 by Mick Dempsey

[Matthew Storrs]

Not strictly children but Anyone who is 18-39 might be worth opening a Lifetime Isa (LISA) I opened one on the money box app and it’s pretty good as gov add another 20% up to £4K a year. You can access funds when you 60 or you can put towards first house...

[dreish]

Really useful information given so far, one thing that I’m not sure of is when to make the cash available for the kids. 
 

I know if I had been given any cash before I was probably at least 23 , It would Not have been spent wisely.

[swinny]

53 minutes ago, Matthew Storrs said:

Not strictly children but Anyone who is 18-39 might be worth opening a Lifetime Isa (LISA) I opened one on the money box app and it’s pretty good as gov add another 20% up to £4K a year. You can access funds when you 60 or you can put towards first house...

Yes they are a good do.

 

Can pay in up until your 50.... The. Start to draw tax free from 60

 

And yes bang 4k a year in and get 1k off the government, what's not to like?! 

 

Not something I will rely on but it's definitely something I take advantage of and will top me.up when I get there