I want to start saving some money regularly for when my children turn 18.

What options are available to me and what are some things I need to consider when choosing the right approach?

  • What is the goal for the money? College? First Home? Teach them about saving? Something else?
    – JohnFx
    Dec 12 '11 at 15:53
  • @JohnFx, I don't have a specific goal in mind beyond just giving them a little help when they set out on their own. If they want to use if for college or a first home that is up to them and hopefully by that stage they would be mature enough to know how to use it wisely. Dec 12 '11 at 16:51

Without knowing your specific goals, I'd suggest you review the choices at Children's savings schemes and accounts. This site discusses the accounts for children and tax benefits for UK residents.

  • could you share similar links for the US please? Dec 14 '11 at 20:24

I am interested in this idea too, and though I don't know anything about bringing up children and the costs associated with it, I would guess a good heuristic would be to assume that:

  • you want to keep a separate account that you don't withdraw from (much), but deposit a certain percentage every now and then

  • possibly have that account as interest bearing with a good yield-vs-risk ratio (is there a term for this in economics?)

CURRENT savings accounts, that do not require you to be engaged in the process, have yields anywhere from 0.05 - 3%.

I must ask: is that a good yield for you?

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