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Post by mudlark on May 10, 2016 12:54:35 GMT
I want to open a savings account for each child, one which I want to remain in charge of until such time I can hand the account over to the child or to another adult to manage it for them. Anyone any particular thoughts on which direction to take?
another question related to the first- I seem to recall being told that the government held money for children in care which once they had been adopted could be transferred to their account - I don't think its much but anything that's rightfully theirs, then they should definately have it. Anyone know what this is...or who/what to contact to find out more?
Thanks. Mudlark.
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Post by cowgirl on May 10, 2016 14:07:45 GMT
Hi I am flying out the door but a quick reply - you need to have the account in trust see following link for brief info www.santander.co.uk/uk/savings/flexible-saver-for-kidsOddly enough I have just been speaking to my brother. My nephew has always been the model child but told my brother that he wants HIS money as he is now 18 years old. He sounds very petulant and my brother is finding it hard that all money from grand parents etc has been squirrelled away is now going to be wasted away on clothes, clubs etc Small potatoes for some parents as he could be spending it on worse but it just goes to show how we can all be horrible to our parents. I am very glad that we have accounts in trust for our kids (not much in them!) Oh and our will states 25 years before they can inherit. the savings plan you mention was the savings bond that was scarp a few years ago and only ran for a couple of years - I just can't think of the name of it. Will thin and post again if someone else hasn't. My eldest born 2004 was eligible but it had been scarpped by 2010 for my youngest |
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Post by jmk on May 10, 2016 16:19:57 GMT
If kids are under 11 you can open savings accounts for them.
If they are 11+ they have to sign and the accounts are in their names. They also get issued with debit cards for each account.
I recently opened savings accounts for my two and although the cards have been issued, I keep them in the safe and have changed the pin numbers, so I can keep control of the accounts until they are old enough and I hand the accounts over to them, probably at 21 or whenever I think they need access to the savings. If EDD was able to access the savings now using the card, she would blow the lot on designer gear, so there is no way I am allowing that to happen until she is of an age to use it wisely.
Think you need to talk to your bank and find out what options they have. Some children these days have current accounts and access their pocket money that way. Not sure that's a good idea as they then think money comes out of the wall whenever they want it.
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Post by elderberry on May 10, 2016 16:57:02 GMT
My daughter (born 2003) came with a Child Trust Fund. It took a while to track it down (BM finally told SW what bank it was with) and the ignorance I met as I tried to get the contact name changed from BM to me drove me to tears. I finally had to walk out of the bank, go to another branch and pretend I'd made no previous inquiries, and I finally found someone who put in the time to find out what needed doing without insisting that it had to be agreed by the child and/or the BM.
For a short time I made additional payments to the Child Trust Fund, and then I stopped. The fund is available to DD at age 18, and I realised there is no chance that she will be able to spend it sensibly at that point, so I was just throwing money away.
I haven't done it yet, but if I were going to open a savings account for DD, I would just open it in my own name, thus giving me full control forever over how it's spent. I think I can trust myself not to spend it on something other than DD, and I hope I can trust myself not to refuse her things that are appropriate just because I'd rather she did something else with the money.
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Post by cowgirl on May 10, 2016 17:50:51 GMT
Hi ignore my earlier post ! Most of it is rubbish. Child trust fund & junior ISA are accessible by the child once they reach 18. Would a joint savings account work ? No idea but I need perhaps to revisit our plans. Child trust funds Try this www.gov.uk/child-trust-funds/overview |
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Post by milly on May 10, 2016 17:53:57 GMT
My younger dd has a Child Trust Fund but we have never topped it up. Older dd has no accounts in her name. We decided not to open accounts for them (although my parents had for me) on the grounds that we didn't know what our children might want to spend their money on come the time they were able to access their accounts. To have it all spent on drink or drugs would be too heart-breaking.
I would rather have our own savings which I know are there should our children need particular things when they're older. I don't feel that they will necessarily be mature enough at 18 to do anything but binge it all. Now dd1 is 15 the drink / drugs thing seems happily most unlikely - but who knows what might happen in a year or two? At the moment it looks like she would buy tons of high heeled shoes, have her nails done regularly and get a dog or two should she have access to any significant loot!
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Post by pluto on May 10, 2016 19:16:01 GMT
I have no accounts for mine, They are expensive enough as it stands, beside the fact that I too don't want my money spend on cigarettes and drugs. No way they are responsible at 18. I think it is a lovely idea but unless you have the attitude 'I give this money and it's totally up them to do what they want with it', than this lovely idea will probably cause problems and heartache for us adopters.
It is just another tool for the child to manipulate and controle. In my opinion better to give them something they need when the time is right.
Get the savings practise by giving pocket money. Even that I can not do as than I have no idea or money is stolen or pocket money. Ofcourse I could write every penny down but I'm not going to take on that task.
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Post by pingu on May 10, 2016 20:18:06 GMT
My youngest has a Child Trust Fund account and extra money in it that the LA gave each year to all their kids in care. They told us when we adopted, to let them know when we tracked the fund down and they would add their bit to it.
Tracking the fund was hard because the scheme was later abandoned by the government so only a small number of civil servants are employed in that area now. We had to write to an obscure civil service address in London, who told us which bank the CTF was with.
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Post by mudlark on May 10, 2016 20:41:44 GMT
Very interesting comments. In thinking about this I must have mistakenly put on some rose tinted glasses for a moment.....
Having a saving account in my own name from which I can take money as and when they need it for things that are useful is a much better idea. I am not sure at 18 I would have spent money wisely, so why on earth would they!
Thanks Cowgirl for the link it looks I can probably track it down from there.
Pluto you mentioned pocket money...as yet we give no pocket money..I am not sure how I feel about it..
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Post by pingu on May 10, 2016 22:28:44 GMT
I think I got my first pocket money at about 8
Just enough each week for a chocolate bar or a few sweets.i was also encouraged to save,( dad opened an account for me) and I did actually do so for one holiday not long after that. My sis ter saved also but rather less ( though she was younger)
I am for pocket money, it gives them an awareness of money and what it can be used for( and it being finite each week) a few pennies of their own, and some counting practise with incentive !
My kids came already primed with a generous amount each week from foster care allowance. Ds2 has never had an increase since, as its only now catching up with his friends pocket money levels !! We set some of it aside for him as savings at first, and gave him opportunities to spend it on things like books, decent toys, etc. Just to limit the scope on the sweets and coca cola front. He is currently contributing weekly to a 3d printer kit which I hope we will finish in the summer.
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Post by gilreth on May 11, 2016 8:04:48 GMT
We have a junior ISA for Sqk - two in fact as LA opened one for him when he went into care and put £200 into it - at some point I must combine them as easier to manage just the one. Cut-off date for child trust funds in 6th January 2011 from memory (know it is January 2011 as Sqk missed out by 6 months) so both your two mudlark should have them. Sqk also has a savings account which we put birthday/Christmas money into and tell him that when he wants something he can use that. The junior ISAs can be accessed by him at 18 and the savings account from 11 - the large sums of money we get periodically go into ISA and the little bits go into savings. No pocket money as yet - got work out when we start that but want him to understand money before we do. We are lucky in that thus far he is a fairly sensible child so hopeful for the future.
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Post by pluto on May 11, 2016 9:20:02 GMT
I always did get pocket money as a child, I think it is a good tool to understand saving and spending etc.
However when children steal and lie I do not think it is an good idea. It is just another worry for the parent I can do without. When my child was just months 'home' I gave him a pig, this pig was full in 2 weeks time, he stole and was roaming around to find money. Also when he has. money it becomes all consuming, constantly wanting to spend it, and it does not matter on what, something, anything will do.
He does not take care of anything he ownes, it breaks, he gives it away, he throws it out or it get lost within hours of receiving it.
Why would I want to waist my money on him, he has to change first before I even consider giving him pocket money. Hopefully he will learn the hard way when he earns his own money.
I remember after he arrived, I gave himloads of really nice toys, this desire quickly went away. I thought he never had his own toys, he will learn to take care. Now several years down the line in this area there has not been much progress.
So why think pocket money will change all this, it won't. Just another fustration for me. Him wanting to buy rubbish, I not allowing this, etc, etc.
And most annoying him having 'pocket money' what is in reality stolen money. Now it's easy, he never has money and when he does I know it's stolen.
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Post by cowgirl on May 11, 2016 12:27:03 GMT
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Post by cowgirl on May 11, 2016 12:29:16 GMT
Hi above link has lots of good info.
Interestingly he makes the comment
"Junior Isa/CTF cash is locked away until a child's 18th birthday. On that day it becomes their cash to do with as they choose. So they may be a cute babe in swaddling cloth now, but at 18 they could be a besotted teen who wants to use the money to follow (the by then decrepit) One Direction around the world. Therefore, if you want control of the cash, better to keep it in your name"
My brother would agree with that at the moment !
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Post by esty on May 11, 2016 17:29:35 GMT
Very useful thread this. I have similar problems to Pluto- if there is money available he will not rest until it's in his hands/gone, etc. I groan st birthday/Christmas if anyone gives him money. I'm going to open an account in my name after reading the thread and links. Thanks.
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Post by jmk on May 11, 2016 20:09:28 GMT
Very pertinent thread as I have just received a letter that EDD's ISA has matured and they wanted to know if I wanted it reinvested for the next 5 years or if I wanted a cheque or for it to be put into her savings account.
I had been thinking of putting it into her savings account (as I spoke about above), but having now read the small print of the savings account, it appears she would be legally entitled to access any monies in the account on reaching 16, which is only 6 weeks away. So I am now going to request a cheque, which I will then open a savings account in my name to keep it safe for her until whatever age I deem her responsible enough to have it. I cannot imagine what she would do with £5,000 if she were to get her hands on it now.
The good thing is she is not even aware of this ISA, so she will not be demanding it any time soon.
So sad when society deems children fit to handle finances aged 16, adopted or not, and parents well meaning savings for their children are at risk if they don't really consider the legalities when opening accounts or bonds for their children.
Must fill in the form and send it off before they keep it for another 5 years as she will no doubt get a letter from them on her 16th birthday. Thankfully the letter is addressed to me and comes to this address.
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Post by milly on May 11, 2016 20:52:13 GMT
We have done pocket money for years but with dd being lightfingered I gave up giving them actual money for the reasons Pluto suggests. Instead I keep a written record and hand out cash when they want to buy something. (Dd2 wouldn't steal but her cash wouldn't be safe from dd1!)
Dd1 still picks up DH's loose change but I do deduct anything she appears to spend from her own money if I can work out what she has bought. I know she's sneaky but my main concern is shoplifting which she has done in the past so if pressurised she will explain where the money had come from (as she wants to convince me she never shoplifts now) It's not ideal but I feel it still gives her the chance to understand money and realise you can't just buy what you want when you want. She's not actually very materialistic anyway - she mainly buys small sweets with her illgotten gains.
BTW I was chatting to some other adopters of teenagers lately and several had the same issue with taking loose change etc.(Which made me feel better)
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Post by mudlark on May 11, 2016 21:00:21 GMT
Lapwing already seeks out loose change and is very interested in money.
I think part of the reason I have withheld pocket money so far is that I cant face what will be the endless stream of cheap plastic tat that will end up broken in a day. I suppose I could put in a proviso that pocket money can only be spent on something they discuss with me first. ( not much fun as a mummy am I!) I can see it being useful as part of my behaviour management strategies....eg. if you do XY or Z again you will not get this weeks pocket money....
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Post by sooz on May 11, 2016 21:59:34 GMT
I have an account for snooz that he has no idea about.
He just doesn't get money, at all! Perfect example today.....I gave him a £2 coin, the item he was going to buy was 99p, I asked him how much change he needed to bring me.....not a clue. Ok, so I simplified it...I took the coin and gave him £1 instead....still no clue!
That said, yesterday we visited that huge toy store (you know the one!!) as he has enough from birthday money to get something he wanted. Item had been reduced, leaving £10. Normally he'd be off looking for something to spend it on, and he did, but decided to keep the £10 to put towards another more expensive item he wants!! Progress!!
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Post by rosie on May 11, 2016 22:29:49 GMT
Our dd picks up lose change too if we are careless., and we have to hide away purses and wallets. She does get some pocket money but less than her friends; as it is spent completely on food and sweets and we are trying to cut down on her binge eating. We do however buy her small things that she needs. We have always said we would only open an account for her in our name without her knowledge as I cannot see her being mature enough at 18 to use it wisely. She has an account she wanted to open with a very small amount of money she has received for birthdays but that is all. I can see why people are tempted to open Junior ISAs as the interest is much better, but not worth the risk.
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Post by elderberry on May 12, 2016 13:57:38 GMT
DD gets pocket money at school and is required to save part of it. Now school are asking me for an account they can pay the money into. They've been asking for months and I've been ignoring them, but they're becoming insistent.
DD has nothing other than her child trust fund, and it seems a bit mean to require her to save it all until she's 18. So my task when she gets home on Friday is to take her out to a bank and open an account. Given the level of interest rates, and the fact that the sum is small, I can't see any point in forcing her to put it in a savings account with a notice period. So I'm sure it's not going to last very long in the bank. But there is an assumption in all the banks that children of secondary age should be handling their own money. So it's up to DD. If she spends it all in the first week then it's spent.
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Post by mooster on May 12, 2016 14:30:10 GMT
Have a look at Natwest First saver account - we did something similar with ours when they were little so they got the idea of money being paid in and them having to plan a little to get money out. I did do a regular high interest saver in their names but took the money out each year and there was no problem closing the account when they were 16 and the high interest ceased, I was named as a trustee on the account (this was a Halifax one). Any savings we have in mind for them we have kept in our names.
Both of them pretty much blew any money they had, it is horrible watching tat being bought but as long as they do not have too much money I found I had to close my eyes and hope they learnt some life lessons when they didn't have enough for what they wanted next.
I say this but not sure it worked, AS is now earning a good monthly wage - he blew the whole first month in a matter of days, not enough for train fare home - now we manage his money for him, I squirrel it out of his account at the end of each month and drip it back in when needed - he is starting to build some healthy savings, sounds draconian to some of my friends but he asked for our help and is not quite ready to manage it himself yet.
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Post by cowgirl on Oct 13, 2016 13:53:36 GMT
Hi
in a previous post on this subject I mentioned my 18 yo nephew and that he was arguing with his parents over his savings as he could access it himself.
Well things have escalated. He blew over £2 500 on a holiday to Ibiza (just went for 7 days) and is wearing the best gear to his first year at Uni. A white t-shirt cost £99
He is living at home whilst going to Uni
My point is this is a kid who got all A grades at GSCE and A level yet spending a £100 on a Christian Dior t-shirt seems crazy so my hubby and I are activity changing the kids savings plans from their names to our names. We will not mention it to them.
Finally we are drawing up a will. Ashamed to say we should of done this years and years ago. But we are stating that neither child can access any money until they are 25 yo. I was married at 25 years old so I know that is high but we feel if either child knows at 18 yo money is on its way it will effect their future choices. That is aimed at our BS. Who knows what the future is for our AS. Our siblings (one is the trustee) are aware that if they are steady & sure they can have the money but the kids will not know this. I will want the kids to have a Clio as a first car not a BMW on a lease ! or much worse ....with birth family sniffing around
in the meantime we will be doing some work with them about managing money
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Post by twoplustwo on Nov 9, 2016 23:44:56 GMT
We pay Stig's pocket money into his own account . I also have a savings account in his name that he knows nothing about. And we have a savings account in my name for him as well.
There are lots of things to bear in mind:
1. If you have the account in your name then, if you need to claim any benefits etc the savings will be classed as your money. Also, for tax purposes, any interest earned will be counted as your earnings . This could potentially cause problems. If you die the money becomes part of your estate. When making a will it's advisable to list each account number and state the beneficiary of any money in that account.
2. If the money is in the child's name, once they reach adulthood , they can spend it any way they choose- as people have already pointed out. On top of that, if they need to claim any benefits themselves, the savings could affect them. Over a certain amount and it's assumed they get 10% interest on the savings (!) They could end up being in a position where they have to spend capital until it's reduced drastically. Having just become an appointee for Stig I was advised to watch his savings didn't adversely affect him.
3. If you get a joint account (both to sign for withdrawals) you become a potential target for 'pester power'. Also, for tax and/ benefit purposes, the money is classed as half each.
It's a minefield and we are negotiating it at present. Luckily Stig has no desire to manage his own finances and isn't very interested in material stuff but, all the same, it's a lot to think about.
Hope you manage to sort it out.
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