Help with current saving method for children, and my proposed way forward to increase flexibility of gifting money at a later date but still having access to some funds when they turn 18
Hello all,
I'm looking for opinions on saving and investing for my children for a 'mixture of access' when they're older.
I have been putting £50/month each into a monthly savings account for both my children, the savings account pays 5.5% annually (max. £100pm deposit), and the total at the end of the year moves to a lower interest saver.
My ideal scenario is for my children to have access to some savings at 18, but also for them to be helped out when they are ready to jump on the property ladder, but the idea of them having access to a significant amount of funds at 18 scares me a little.
My thoughts are to move the balance of the older childs saving pot (approx. £3K) into a Junior SS ISA and continue to deposit a small amount a month into the Junior SS ISA, and then move the £50 monthly deposit (would likely increase as they get older) to a personal Stocks and Shares ISA to build up over the next 15-20 years. It would allow me to contribute a sensible and equal amount to them when required.
I would then do the same exercise when the youngest child reaches a similar amount (£3K) in their current savings account, so that they end up with a similar amount when they turn 18 (i know this could change significantly depending on how well the investing performs, but the idea of a level playing field initially sits well with me).
Am i silly to get rid of the 5.5% savings account, or will the personal Stocks and Shares ISA out perform this?
I understand that i will be using my own allowances when using a personal Stock and Shares ISA.
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Questions regarding the JISA and Stocks and Shares ISA.
I would be looking for a balanced or slightly adventurous investing approach for both accounts - is it as simple as selecting this approach and it being done for me or do i have to personally select certain stocks and shares? My experience with trading is
almost non-existent so if the process could be explained for dummies that would be great!
If i top up the Junior SS ISA and Stocks and Shares ISA every month, does this automatically get invested or do i need to keep on top of it?
Any feedback would be appreciated.