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A little pot of gold and silver – saving for children

ByEmma

I’m big on saving.  I think it stems from my childhood, when my mum brought us up on her own after my dad died.  She was always careful with money, and ensured we had savings accounts that were used specifically for bigger important items that we needed to save for.

savings for children

We used to get pocket money (as my brother and I got older it was tied with chores and a ‘tidy bedroom’ contract), but it was nothing like the amounts children nowadays seem to get.  We didn’t have an allowance either; it was my mum’s belief that she would provide essentials, and we would either do jobs to earn more pocket money, or have to save birthday/Christmas money until we could pay for an item we wanted.  It worked pretty well, although that was really before the time when everyone was caught up on pop band merchandise, fashion changing so quickly, and marketing so much to children.

I was really proud of the items I saved up for and bought, amongst them a good bike when I wanted a change, and my saxophone.  Most of the other things I yearned for were books and music, but those were more affordable on a day to day basis.  My brother was more of a fritterer of money (he always wanted Nike trainers so my mum told him she’d buy him white pumps and draw on the swoosh – he bought his own in the end) and it’s taken him until he’s older to start to save.  I was the ‘boring’ sensible one not wanting to spend, just in case.

I want to make sure that we have enough for a rainy day without missing out on the here and now.  With things like education, housing and just life in general getting more expensive, I make sure that I save each month going straight out of my current account after being paid so I don’t really miss it.

Over the last few years I have managed to streamline my savings, although I might have to reassess that soon and move money around…maybe some longer term investments instead of all based in cash which is a lot less scary.  I’m a big fan of ISAs – interest free savings, what’s not to like?  Yes, it’s a faff to keep checking interest rates each year, but it’s worth doing.  Santander’s ISA rates currently feature on Money Saving Experts ISA section, but there’s lots of choice depending on what type of savings account you’re after. 

For longer term savings I also have a mutual friendly account.  Not many people know about these, but it’s a 10 year investment account, tax free in addition to an ISA, so you can only put a small amount in each month.  But I’m hoping that by the end of the 10 years, I’ll have a lump sum that can be reinvested elsewhere and used for a first car, university fees if N wants to go, or even put towards a house deposit.

My plan had been to potentially use N’s child benefit to save each month, but I’ve not got round to that.  Instead he has a savings account, a moneybox, and now a pot at the farm for ‘wages’ when he’s ‘helped’ do jobs with his dad and uncle on the farm.  All the nephews and niece have their own pot, and it’s nice for them to be able to fill up their pot, then either put it into the bank or spend it on something they’ve been eyeing up. 

N’s not yet at the stage of wanting everything he sees in the shops, but I hope once he is, he’ll want to do a bit of saving alongside the spending.  What I’d like to do is make him a Blue Peter style Pound-o-meter when he decides he’s saving up for something big.  At the moment his button jar is handy for rewards, but as he gets older, having a visual reminder of how close he is to the target, whether It’s a new bike or quad bike, might help keep him on track.

money money money
N likes putting money he finds in the house in his pot…not usually notes though!

Have you been stashing money away under the bed or in savings accounts, and future proofing your child’s tomorrow?  How do you teach them about money?

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Disclosure: This is a sponsored post.  All words and opinions are my own.

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34 Comments

  2. Its a good habit to save money and when it comes to the future of the children its very important.

    1. Such a shame when you want to save that it’s really hard to find a decent interested rate nowadays. I know I struggle, and keep getting notification of my rates dropping again.

  5. Everytime we went to save for the kids, something came up and we needed that money asap, but once we get everything paid off, we got them money set aside..

  6. I think it is great that our kids are following our lead when it comes to saving. It because second nature for our kids to pick up our habits.

  7. I always give my son a little money for chores. I also set aside money for him every month in a bank account but he won’t be able to touch that money until he is older.

    1. That’s the best idea I think, and what we’re aiming for. Yes he can have a day to day money pot for when he wants treats, but a proper savings account to save for first car, or house, uni fees or the like.

  8. My daughter gets allowance for helping out around the house. She spends most of it, but she also saves to have spending money on vacations and such. I think it helps to teach kids responsibility when you give them money to manage.

  10. I really need to move some of my money into some long term investment programs where it will really grow. I’m not helping it grow where it’s sitting now.

    1. I’m really risk averse and worry that I’ll need the money, but I also need to look into some – I begrudge paying management fees too.

  11. What’s your two cents on parents who save for their children thinking that their children must live a very happy life full of money and then later on when the kids grow up they realize that they don’t want the riches but want to stand and make their money for themselves in their own way?

    1. It’s not really about setting them up for life, it’s encouraging them to save and put money in for themselves so they know they’re saving for something they’d otherwise not be able to afford without credit otherwise. Of course they should have jobs and earning pocket money for additional chores as they get older.
      Kids can always give up any money and spend it on the parents if they want, but in this day and age it’s a lot harder to get through uni or buy a house, so starting saving early on encourages them to continue saving when they get older

    1. Thanks. I think it’s important to set a good example, and I don’t want N to think it’s not important to save and earn.

  13. It is hard to teach them about money when they think there is an infinite supply.. But we do teach our kids the value of it and that we need to respect it.

  14. It’s so important to teach children from an early age to save. My husband was a big saver from the beginning and thanks to that we were able to retire early and we own our house free and clear.

    1. I think that’s what a lot of people aspire to but don’t know how to start. I think if you start early enough, you don’t realise you’re missing the money and it’s easier.

  15. We were also given rewards for doing chores as kids and we ended up growing up as responsible adults. I think savings is really important whether we are kids or adults.

  17. The mutually friendly account sounds interesting. 10 years is a good time too…enough to invest and forget, and still build funds.

    1. It’s definitely an easy way. You can only put in up to £25 a month, so not lots, but at the end have a lump sum to then reinvest or spend

  18. I agree. It’s hard when life teaches you the lessons of finances as they did me in my 20’s. It’s always to learn your lessons in your youth. Keep setting the example and talk about it with your kids.

    1. Sometimes, it never seems like the right time. I don’t save as much for him as I probably should, but all birthday/Christmas money at the moment goes in there, and any odd change.

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