Good idea or waste of time?

(Would only be in the region of £40-50 a month each – ages 10, 4 and 1).

I’d put it into premium bonds for them instead.

might be better asking on money saving expert.

disadvantage is that it will be locked away for 60 years.

Might be better seeing if you can open a stocks ISA. You would be under the limit for an adult but not sure if they had childrens ones yet. This means the money can be retrieved when they want to go to uni, buy a car or a house.

Cash savings for children were tax free, not sure if they still are?

What about a Child Trust Fund?

Has the advantage that HMRC will give you £250 to start it off.

I was just looking into the same thing myself.

You wouldn’t get the income tax benefits that pensions provide if you were contributing for your kids though, would you? That’s the big winner that a pension provides.
Have a look into the new Junior ISAs that are being launched in November. They have a lock-in until the child hits 18, but they are totally tax free, which is what you’re after.

Advice on Child Savings Accounts here:
http://www.moneysavingexpert.com/savings/child-savings-tax-free

Think you’ll find the govt got rid of Child Trust Funds earlier this year though. Part of the cut backs.

I think they only stopped them for new kids.

The DirectGov website says:

Who is entitled to a CTF account?

Your child is entitled to an account if all of the following apply:

• your child was born between 1 September 2002 and 2 January 2011
• you were paid Child Benefit for that child for at least one day before 4 January 2011
• your child lives in the UK
• your child is not subject to any immigration restriction

Smallest 2 have CTF’s.

Thanks for the other suggestions, will have a look.

What I’m conscious of is that so many people my age don’t have pensions. I’m fortunate (as things currently stand) to have a work one. Without that I too might not have got round to it yet. So I though if they get to adulthood and already have one, they might be more inclined to carry it on than if they had to start from scratch at 18/19/20 or whenever.

Anyone done really well out of money purchase schemes in recent years?

High long term management costs and all that?

The two financial barriers they might be likely to face at an early stage are Uni fees and House deposit. I’d be looking to find ways of lessening those. A decent education might make them more likely to be in a job with a decent pension… if those still exist by the time they get to 21 or so…

http://www.forbes.com/forbes/2011/0627/money-guide-11-kotlikoff-roth-ira-mutual-fund-kid-millionaire.html

http://www.telegraph.co.uk/finance/personalfinance/pensions/7911550/How-to-make-your-child-a-millionaire.html

http://www.fool.co.uk/10steps/step9.aspx
http://www.babyworld.co.uk/information/products/books/parenting.asp#millionaire
“Make Your Child a Millionaire
Alan Oscroft
Boxtree, paperback, 194 pages, £5.99

No, not some book encouraging you to push your child to talk in sentences by the age of one, compose a symphony by the age of three and sell their first company for £1 million by the age of six.

It’s simply a clever little guide to help you make the right investments for your child’s future – you might even see your child supporting you in your old age!

Written by the Motley Fools, who run an irreverent investment website with more than a grain of common sense thrown at financial jargon, this book will help you pick your way through the money maze.

It really is aiming at the complete layman, so if you do already have a bit of investment savvy, it may be too simplistic.

But as it examines the stock market, banks, building societies and the internet, among other topics, if you have no idea where to start, pick his book up to start you off.”