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Money doesn't grow on trees (☹️) which sadly means you can't rely on picking whatever you need, whenever you need it. Getting into a habit of saving can benefit you and your family by helping you structure your goals and planning for them in a more useful way.
Are you interested in building up a general savings bucket that you can give your child when they turn 18?
Adult savings accounts are an easy place to start when you're not quite sure what you'd like to do with your money in the future or if you're going for a short-term goal such as childcare cost.
Child savings accounts (a very popular choice offered by most banks) will get you better rates than adult savings accounts but there might be restrictions around the amount you can pay in and the number of times you can withdraw funds.
Although the rates are high at the beginning, you can expect a considerate drop after the first year. To counter this, you'll need to scan the market and keep moving the money around. The last thing to consider is tax-liability which kicks in once the interest on the account is higher than £100 a year.
Investment accounts are great if you know you're not going to need the money in the next few years. Depending on your exact scenario, there's a few different ones that could work for you. We'll help you figure out which one is most suitable for you.
Perhaps you're thinking of sending them to private school? Paying for their university or helping them start their own business in the future?
For more defined goals such as these, we recommend you look into personal and Junior ISAs or Bare Trusts, some products that work in different ways but which help with creating a pot of money your child can use when they're older.
