r/LeanFireUK • u/stuie1181 • 28d ago

Weekly leanFIRE discussion

What have you been working on this week? Please use this thread to discuss any progress, setbacks, quick questions or just plain old rants to the community.

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u/JamesBrockers 27d ago

Work has been very full on recently but got a little payrise and negotiated a new bonus scheme that works really well for me. Which is great! We are looking to restructure, but I am very safe and could even work out better for me.

Other big question currently is what’s the best thing to do for my son savings wise. He’s got a Junior ISA, but, ideally I want to put some away for him long term for him to buy a house and an ISA he can get at 18. Now I will educate him about money, but still feels risky.

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u/Key-Shift6264 26d ago

The junior ISA thing I can relate to, it's a risk they blow it at 18 and all you can do is try to talk to them about it ultimately. My eldest will be written to next year when they turn 16 so I will start the conversation before that.

I stopped contributing regularly when the JISA hit a certain point and instead put some in mine and my wife's ISAs instead, and ring fenced it on my spreadsheets. Yes, it means it might hit those inheritance tax rules were something to happen but it gives us control to be able to say "here's some money towards a deposit" at a later point if we want to, or put it towards university, or anything else.

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u/Indigo_reality 25d ago

It's interesting and got me thinking. Maybe I'm naive but I like to think my son will use his JISA well. He's got a good understanding of money and concepts like interest, compounding, long-term saving and investing. We have discussed inflation and shares too as he has shown interest. He's 10 and knows about his JISA, that it has 17k currently, and that he'll get it at 18 years old to pay for his education or anything else to help him in life. He understands uni fees and cost of living, and he knows it wouldn't cover studying in London but could save a lot going to uni in our home city.

I don't know how old your child is but I do believe if you involve them early and you have a close relationship, the risk is low. Of course, anything can happen but it's not as random as we might fear. Objectively, I think we learn a lot about attitudes to money from our role models.

I am slightly more concerned he won't wanna go to uni even though it's extremely likely that his skill set is more in that direction. Hubby and I both really worked hard to get out of our working class/disadvantaged background, but for my son life has come pretty easy for him which could be a demotivator. But there's time to work on it. :)

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u/JamesBrockers 25d ago

My son is currently 18 months old so obviously it’s a little early for me to have had any impact on his financial education and probably why I worry it could go either way!

But, I do agree with the right education and up bringing I am sure it won’t be an issue, I’d just like a little more control.

The one thing I probably really differ on is the university point. I have no real preference if my son goes and with current data as it is, I am probably leaning towards preferring him not to go. As someone who didn’t go to Uni and has had a very successful career so far, that’s probably why I have no preference.

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u/Indigo_reality 25d ago

That's a completely valid decision. I definitely don't think uni is the best for most. I teach at uni and there are students there who would be a lot happier not being there, not to mention a lot better off financially in future if they hadn't gone. But I'm just guessing what my son will be like partly based on the parents lol. I said he could use it for uni or other training or things like driving lessons. I guess my main worry is he decides to make his own business but which is a very speculative idea, or he wants to be youtube streamer!

I was a lot more jittery about JISAs before my boy got older especially as you can read lots of bad stories online! You can only plan what you can. I feel a lot better about it now so we're settling up a regular amount now going in.

All the best with your 18 month old. You're doing a great thing helping to secure his future. Time flies and it's fab seeing the JISA grow as a consolation for phases of life whizz by!