When Squish was born one thing I wanted to prepare for was his financial future. Having been through the whole going to uni, buying a house etc I now appreciate just how important it is to have that little nest egg. He might want to travel, buy his first car or of course go to University (which we know now is far from affordable). In which case, money doesn’t come easy at that age. Wages are low and money is in demand so who will he turn to? Oh yes… just as any clued up teenager would, they turn to the bank of mum and dad.
In 2009, we started a government Child Trust Fund, through which we got a £250 bonus to get us started. Since then we have been paying £10-£20 a month in which although doesn’t seem a lot, adds up to quite a tidy sum when he turns 18. Over the years, we will probably up this when we are less financially strained but I am so happy we started it. Although I will be terrified about what he’ll spend the money on (as the drawback is we won’t have control when that day comes) I’m just happy he has been given options… it’s a ticket to choices and a bit of freedom. However, it’s my understanding that Child Trust Funds are no longer available and have since replaced with Junior ISA’s which are said to offer better rates, lower charges and far greater investment choice.
In reality there are many ways in which you could save for your child. Should we have another baby one day…. we will most probably do a bit more homework and maybe try and find the best interest deals on savings accounts. The main reason we went with the government option the first time around was because of the attractive bonus however the government are no longer this generous so my advice would be to shop about!
Anyway, there you have it… my first bit of financial advice.