I sometimes find it hard to remember the days ‘BJ’, that is, before Joe. But one thing I do remember clearly is just how much disposable income we had, money to spend on frivolities like clothes and make-up, eating out, excessive amounts of shopping that we didn’t need, and holidays. These days it seems that every penny is accounted for and earmarked and most of it seems to be earmarked for Joe.
Earmarked for Joe? Yes, it has to be said, it costs a fortune being a mom to a football mad boy. Each month we spend around £100 on his football training and subs. He has a season ticket at West Bromwich Albion which is another £50 a year. His feet won’t stop growing, so it seems new boots are needed every couple of months, and they have to be Puma or Nike, and then there are the new football strips, wanted (new design of course) and needed (why won’t his legs stop growing – is my boy part giraffe?). Add into this the Fifa points that I seem to be buying every week, the school trips and residentials, and the fact I need to remortgage in order to do the food shop and it is clear, being a mom of a boy is very expensive, and it will only get more expensive, which is why I’m already thinking towards the future.
We’re not wealthy by any means, so Joe can’t exactly have a trust fund, but there are ways to make sensible savings towards the future, even if it is only a small sum each month. One way where you can not only save money, but can also allow it to grow is by opening a Junior Isa Account. There are two kinds of Junior Isa’s, a Junior cash Isa and a Junior Stocks and Shares Isa. The main difference between a junior Isa and an adult Isa is that the junior Isa does belong to your child, money cannot be removed until your child reaches the age of 18, and this is what makes them perfect as a way of saving towards their first car or University costs.
The regular Junior Isa account earns interest like a savings account, and you can deposit up to £4,260 per year into the ISA, which could create a nice little nest egg by the time your child is 18. If you opt for the Junior Stocks and shares Isa, then your money is invested in financial markets with the aim of earning returns for investors that are greater than those you would get in a Junior Cash ISA. There is obviously some level of risk involved, but your returns could be much greater too, so it is definitely something to weigh up.
With university fees being so expensive, most establishments now charging the maximum amount of £9,000+, it would be good to have some money set aside to help with this, or with a deposit for a first home or a car if your child decides against university.
Do you have any savings put by for your child’s future? What are you saving for?