Giving your kids a helping hand in life

We all want the best for our children. We feed them, we clothe them and we try to teach them good values. We never stop caring about our kids or worrying about them for that matter, ever after they've flown the nest.

Starting out in adult life can be a struggle these days; University education is expensive and most students are left with large debts. Finding a job can be tricky and getting on the property ladder can be even harder. With mortgage lenders demanding huge deposits these days first time buyers are really struggling. With so many potential first time buyers now having to rent rather than buy a property, the rental market is saturated which has pushed up the prices of rented accommodation.  It's a no win situation for young people these days.

Saving up a lump sum for when your children most need it could be one of the most beneficial things you ever do for them. You could make a huge difference to their lives, and it's never too early to start saving. You never know where life is going to take your children, but with some money in the bank they'll have more options and it will definitely help them out massively one way or another. It may make their life easier at University, enabling them to concentrate on their studies rather than having to get a part time job. Or perhaps a lump sum will be used as that all important deposit for a mortgage. Save for your children and it could end up benefiting your grandchildren too; the perfect legacy. Maybe they'll spend it on a life changing gap year travelling the world or on driving lessons and their first car, which in turn might enable them to get a better job. It's hard to imagine what the savings you've put aside for your children will eventually be used for when they're still tiny, but you can be sure that they'll thank you for it when the time comes.

It's important to save wisely for your children. You need to make sure that as much of the money as possible goes to your children and not to the tax man unnecessarily. From November 2011 tax free savings accounts were made available to under 18s in the form of the Junior ISA. Like adult ISAs there are two types of Junior ISA; stocks and shares Junior ISAs and cash Junior ISAs. This is a great way to grow a lump sum for your children tax free. You can open a Junior ISA for your child under the age of 18. When they reach 18, if they don't take out their savings it will be automatically converted to a standard adult ISA, so they can withdraw the money or continue to save until they need it. Anyone can pay into a Junior ISA too, so you can easily give the details to other family members so they can contribute to it. When the kids are too tiny to appreciate presents, an addition to the ISA will often be much more appreciated than yet another toy, a great choice for grandparents etc. The current investment limit for a Junior ISA is £3720 a year. It's worth remembering that the money cannot be withdrawn from a Junior ISA until the child is 18, so don't invest more than you can afford as you won't be able to get it back again in an emergency!

Another good way to save for your children's future is with an Investment Bond. When you know you're saving for the long term, perhaps for when your child celebrates their 18^th birthday, or buys their first home, then you can make the most of your money if you tie it up for a period, such as five or ten years or more. An investment bond will usually allow you to invest more each year than you can place in a Junior ISA, so it's a good vehicle for saving larger amounts and you should get a decent return on your investment. Here at Sheffield Mutual for example, you can invest from the minimum of £1000 a year, up to the maximum of £25000, and we guarantee you'll get a minimum return of 103% so you know your money is safe. Of course you could well receive a return much greater than this. You can open a bond for a child of any age. If a withdrawal is made while your child is under the age of 16 then the signature of a parent or guardian is needed.

You'll always worry about your kids, but you can perhaps worry a little less knowing you're putting a little something aside for their future. You may choose to invest lump sums periodically, or you might want to save regularly each month for them, perhaps a set amount out of your wages. When friends and family ask when your little ones would like for Christmas or birthdays, don't forget that you could always suggest a contribution to their savings. The latest plastic toy will soon be broken or forgotten but money saved could make a world of difference to their future and every little really does help.

It's definitely something worth considering. It's never too late to start saving, even a modest sum can make the world of difference to a teenager leaving home for the first time and making their own way in the world.

Visit the Sheffield Mutual website for more information - http://www.sheffieldmutual.com/

 *This blog provides generic information and opinions of the writer and should not be relied upon for making investment decisions. No advice has been provided by Sheffield Mutual. If you are in any doubt as to whether a savings or investment plan is suitable for you, you should consider contacting a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk. Advisers may charge for providing such advice and should confirm any costs beforehand. Any reference to taxation is based on the writer’s understanding of current tax legislation and practice, which could change in the future.*

5 reasons why you need to save for your daughter’s future

If your daughter is the apple of your eye then you will want to safe guard her future by opening a long-term regular savings account. There are many things a girl needs in her life and here are a few of the big ones that you are better preparing in advance for.

Your daughter has now turned 17 and instead of excepting any old banger like you know doubt did in your day she will want to be seen something a bit more ‘I’m a new driver and want a new car, not a new to me car’.  As well as buying and insuring the car there are also the lessons and tests to pay for and for the sake of your wallet let’s just hope she picks things up quickly and passes everything first time. After that there are also the continual costs of running and maintaining a car.

You’ve seen her through and watched her grow from primary to high school and then attend college but all this has been while she has been safely living under your roof. Now it’s time for her to fly the nest and that doesn’t come cheep, if you’ll pardon the pun. By saving throughout her life you can help your daughter with rent and all the things she will need such as a bowl, just incase she wants to make that pot noodle look more upmarket.

Now she’s moving away it could also be a great reason for wanting a new wardrobe. Hopefully the accommodation she moves into will have an actual wardrobe but you can bet your daughter will want new clothes, shoes, handbags, scarf’s and accessories to fill it with. She will be meeting a lot of new people and nobody aims to be the worst dressed person in the room.

Skip forward a few years and before you know it your daughter has graduated and found her first job in her chosen field. Since living away while studying her thirst for independence will have grown. Although she has her own job and hopefully the person/people she is living with will too there is nothing wrong with helping o pay the deposit and first month’s rent or even help out with a mortgage. Then you could also get her a lovely house warming present, a plant if you think she won’t let it die or maybe a nice framed family photo if you think she will.

She may have been a princess in your eyes all her life but the time has come were she will be a princess for the day with a lot of people watching. Your wedding day is meant to be the biggest day of a girl’s life and with venue hire alone reaching an average of £2,763 you may wish to help out your princess and her prince charming not only financially but with love, support and helping with the organisation and stress.

For more information on long-term regular savings please visit -  http://www.sheffieldmutual.com/

*This blog provides generic information and opinions of the writer and should not be relied upon for making investment decisions. No advice has been provided by Sheffield Mutual. If you are in any doubt as to whether a savings or investment plan is suitable for you, you should consider contacting a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk. Advisers may charge for providing such advice and should confirm any costs beforehand. Any reference to taxation is based on the writer’s understanding of current tax legislation and practice, which could change in the future.*