Saving for children
Saving on behalf of a child can be incredibly rewarding. It can give a young person in your life the option to do things they might not have been able to do otherwise, like go into further education, set up their own business, buy their own home or travel.
The first step is deciding where you're going to save money. When choosing a savings account for a child, it's worth asking:
- How old you want the child to be when they can access the money
- Whether you want to grow their savings by earning interest or invest the money in the stock market
- How much you want to pay in, and how often.
The below insights aim to help you understand your options.
Visit our savings hub for tips and advice on budgeting and saving money.
How to find the best child savings account for you
When choosing which type of account to open on behalf of a child, it's worth thinking about whether you want to save or invest the money. You might also like to consider if you want them to automatically get access to the money when they turn 18 and how much money you want to save for them regularly.
At OneFamily, we currently offer two types of savings accounts for children: Junior ISAs and Junior Bonds. We also manage child trust funds, which you can transfer an existing child trust fund into, but you can't currently open one.
Find out about common types of junior savings accounts and how these compare to junior ISAs:
Giving your children financial support
How much financial support you should give your children is a widely debated topic. Ultimately, there's no right or wrong way to teach children the value of money and, as a parent, you're probably the best person to decide what's right for your child.
Whether you charge your older children rent or give your younger children pocket money, is totally up to you. Do what works for you and your family and don't be afraid to rethink your decision if it's not working as you expected!
Find out more about weighing up how much support is right for your children:
Giving your children advice about money
Teaching your children how to budget and save money will help them manage their finances and avoid debt as adults.
While it can be tempting to help your children out financially when they need it, sometimes it's more effective to show them how to help themselves.
Find out more about teaching children about money:
Teaching your child how to drive
As terrifying as it might feel, when you child turns 17 they'll be able to apply for a provisional driving license and start learning to drive.
Find out more about teaching your child to drive and getting the right car insurance:
Saving money as a teen
Making and saving money is often not a top priority for teenagers, but it's the time in life when most people first start to take some control of their finances, especially when they're making plans to leave home.
It's a good idea to get into the habit of budgeting now, while you have fewer financial commitments. Then you won’t struggle with managing your money later in life – which many people do. And you’ll have more money for the big things, like buying your own house, getting married or setting up your own business.
Find out more about saving money as a teen:
