What to do with money your children receive this Christmas

christmas money and gifts under chrismas tree

Christmas is a time of year when you’ll most likely find that your children are receiving all kinds of gifts and presents which could range from toys and games to books and clothes. However, you might find that some grandparents, aunties and uncles amongst other relatives might just simply give money to you, the parents, to spend on presents for your child. So, what will you do with the money? Will you spend it on toys, clothes, or put it to something they could use in the future, such as savings for their first car, deposit on a house or university fees?

Whilst it’s perfectly natural at Christmas to buy some toys and games, as well as clothes for your children out of this money, you could be forgiven for wanting to put some of the money aside for your child’s future.

One way of doing this, is by teaching your children the value of saving their money up so that they have a nest egg to fall back onto in the future, whilst further satisfying yourself that your child could have a bit of a boost when they begin adulthood in regards to a cash lump sum on their 18th birthday.

If this is something that you might want to do for your child, it might be worth looking at setting up a long-term savings account that will allow them to withdraw their savings when they turn 18. For example, at Shepherds Friendly, one of our child savings plans is the Shepherds Junior ISA which allows you and your child to save in monthly instalments starting from £10 or lump sums from as little as £10 after an initial lump-sum of £100. This flexible plan would therefore allow you to save a monthly sum for your child’s future if you wished to do so, whilst your child could also benefit from learning the value of saving by making lump sum deposits out of birthday and Christmas presents, or even through their personal savings from their pocket money once they get into the habit of saving their own money.

So if you wanted to give the gift of savings this Christmas, teach your child the value of money and give them a head start into adult life, you could consider the benefits of a long term child savings plan such as the Shepherds Junior ISA.

No advice has been provided by Shepherds Friendly in relation to this article. If you are unsure about any of your finances, you should contact a financial adviser for advice. If you do not have a financial adviser, we can provide access to Financial Advice via Shepherds Mutual Solutions by clicking here. A cost may be incurred by Shepherds Mutual Solutions for providing such advice and will confirm any cost beforehand.

Please note: All information within Your Resource Centre is correct at the time of publication, and we make every effort to keep content accurate. However sometimes information may be out of date. You should not rely on this information when making financial decisions as no financial advice has been given. The information reflects the view of the author and not that of Shepherds Friendly Society.

If you’re not sure what to do when making financial decisions then you should consult a financial adviser, who will likely charge for any advice that is given.

Most recent in learn:

search looking glass

Most popular in learn:

search looking glass