Wednesday, 30 July 2014


Before having children me and Mark didn't really care about saving money. It wasn't something that we thought was important. But having children changes your views on things. We started to worry about our savings and how our children would be effected in the future if anything were to happen.

The result of this was us opening up a savings account for both Paige and Parker. Money can be placed into the account and then when they are 18 years old it can be withdrawn for them to spend on whatever it is they want... Hopefully driving lessons, university fees or a mortgage. Something that will help them later in life. I actually had the same as a child that my god mother set up for me. Paige also has a little moneybox to help her learn to save on her own while she is so young, hopefully this will teach her the importance of savings.

Paige's moneybox

We also have an ISA account. In this account money is saved each month and it was actually opened with some wedding gift money that we were given.

On July 1st new ISA rules came into play that allow you to save up to £15,000 in a new ISA (NISA). Some people are unaware that instead of having all their money in a new cash ISA it can infact be split between a new cash ISA, new stocks and shares ISA. We had no idea and thought that cash was the better option but it may not be for everyone.

Scottish Friendly are warning people of being automatically drawn into using just a new cash ISA, like we were, and instead wanting people to consider the other ISA investments that are available.

Neil Lovatt, Scottish Friendly’s Director of Financial Products, said: “For every one investment ISA taken out, three cash ISAs are opened.

“Cash is easier to understand as it offers security and access to the savings without penalty that investment ISAs do not. People are being put off by what they think is pure equity investments and instead are opting for accounts that offer poor returns on their cash”.

Surely if you put your money into an ISA you want the best possible return but that may not happen in the form of a cash ISA because of the low rates of interest. In some cases savings providers are actually reducing their rates for fear of overly high inflows.

The good news is that if you already have an ISA account it will automatically be turned into a NISA allowing you all the extra benefits that the new rules bring. This makes for a much flexible account.

* Annual limits increased to £15000
* Contributions can be split in any proportion between a New Cash ISA and New Stocks and Shares ISA
* You can transfer a Cash ISA into another Cash ISA or move it to a Stocks and Shares ISA.
* You can also transfer money from a New Stocks and Shares ISA to a New Cash ISA

For more detailed information why not check out the Scottish Friendly guide to the New ISA's or their Twitter. There is also a handy video which explains everything in a simple form that I personally have found very useful.

Do you save money for your children's future?

Thanks for reading,

Nicola Xx

*Disclaimer - Sponsored post*


Post a Comment

Related Posts Plugin for WordPress, Blogger...
Design by Studio Mommy (© Copyright 2014)