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Not have a child savings account

(17 Posts)
VAVAV00M Tue 07-May-13 22:21:45

We are just going to pay off DC's student loan as a 'graduation gift' and contribute to future house deposits/weddings.

To many times I have seen savings been wasted and it just seems too risky.

VAVAV00M Tue 07-May-13 22:23:53

We are also paying after to make sure they don't take up any 'worthless' degrees or bad property choices...

So slightly selfish

purrpurr Tue 07-May-13 22:25:56

So no savings for them, and only given assistance if they make your sort of choices. Hmm.

seesensepeople Tue 07-May-13 22:26:31

A decent car and house deposit would probably be more useful!

Student loans are one of the cheapest forms of debt and many never get repaid as they time out.

Not at all unreasonable not to have a child's saving account, the interest rates are rubbish!

HollyBerryBush Tue 07-May-13 22:27:30

How old is your child?

You have 18 years tax efficient allowances using the childs name, including ISAs etc. You can whip out the ISA money before they are 18 and put it in a trust so they can't access it until a given date in future.

Get an accountant or at least take proper advice on how to move your money round.

NotYoMomma Tue 07-May-13 22:31:07

Student loan repayment has to be the most useless gift ever!

Pointless!

VAVAV00M Tue 07-May-13 22:32:41

Not 'my sort of choices' in the way do this, this or this.

Just 27k is a lot of money, I'm not just going to throw it at them.

NotYoMomma Tue 07-May-13 22:33:44

What about money other people give you for the DCs? Are you just spending it?

I think it is selfish. What if they want to do media or dance and have a passion for it?

What do you deem an acceptable degree.
My degree in one of the three main subjects at school is irrelevant in my actual career now.

I hate this plan

VonNeurosis Tue 07-May-13 22:34:33

I agree with seesensepeople paying off student loans early is really poor financial decision, this might change with the new scheme but i'm currently paying 1.5% on mine. I would much rather have the cash saved for a house deposit.

NotYoMomma Tue 07-May-13 22:36:02

But you will throw it to the student loans company? Who won't even need/ want it straight after graduation?

You do know they will be adults? With choices and individual preference?

What if they have an amazing but unproven business idea and want to invest some money?
What if they then can't and miss out on huge chances.

I don't get it

NotYoMomma Tue 07-May-13 22:37:00

What if they don't want to go to Uni?

Xales Tue 07-May-13 22:40:26

So if one child does what you consider a worthwhile degree you will clear their debt.

If another doesn't sod them?

VAVAV00M Tue 07-May-13 22:41:15

<scurries away and looks up bank details for the morning>

I am a bit dim, sorry.

Will be pissed if they blow the money though,

rambososcar Tue 07-May-13 22:42:25

What if those fortunate DC compare their parents' financial situation to that of those not as well off and are grateful for being given any assistance? Or those whose parents have the money but who don't believe in having either child savings accounts or in gifting them money for university/graduation/first houses?

Why is there automatic criticism for the OP for having the cheek to decide how she invests and spends her money?

RhondaJean Tue 07-May-13 22:46:43

Vava, I think the student loan thing, with all the good Intentions you obviously have, isn't the best use of the money.

I don't think actually that you do need to have a savings account which you give them control of at a certain age. I think what got people's backs up is the suggestion if they don't make the decision you want,myou would withhold support. I don't think think you actually mean that.

You need to trust yourself that you are doing a good job parenting them and installing the values that matter to you in them though, and then try to be confident they will make the decisions they need to.

And having some money stashed by, whether in your names or theirs, to help them with these is a kind thing to do. Just don't put too many strings on it, (quick scan of these threads will show why!)c

PorridgeBrain Tue 07-May-13 22:50:03

why are you dim? Don't let others sway your view so quickly. There is nothing wrong with your approach to helping your children financially, it's just a different approach to the 'child savings account' approach - both have pros and cons IMO.

Why not see a financial advisor, describe what you are trying to achieve/avoid and see what they can advise is the best way to do it.

thebody Tue 07-May-13 22:51:45

Wait until they are parents themselves and struggling.

Will be a lovely gift and used well.

Wouldn't dream of throwing cash at my older lads now in early 20s. Be straight down the travel agents or up the pub wall.

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