Firstly, I know they are incredibly fortunate.
My two DC, 17 & 15, were left about £300k in trust when my parents died.
My sis and I are trustees. She doesn't have kids and is very much a 'sleeping' trustee, in that she is happy to go along with what I suggest we do with the trust fund.
The trust was set up about 3 years ago and we invested £200k in a property which is now rented out and returns a healthy income.
The remaining £100k is in a variety of bank accounts/bonds. (So c. £50k each)
Income from the property is paid into Junior ISAs each year, which we'd also paid into previously, so each is worth around £30k.
At the moment neither of my DCs know about this trust fund or ISAs etc, although I have made vague references in the past to 'savings we have put aside for your education and future'.
DH and I took the view that we didn't want our kids to think that they didn't have to work hard for their future, and we didn't want them to badger us for money for x-boxes/computers/phones saying 'we know you can afford it from 'our' money'.
Thing is, DS will turn 18 later this year and so we will need to talk to him about this and begin to help him manage his own finances in the future.
I can't decide about the following:
- How to tell him e.g. begin to drip feed now about the various 'savings for education' etc or take him out for dinner when he's turned 18 and give him the 'whole picture'!
He will start to get all the statements and need to be named on the Land Registry Deeds for the property as soon as he turns 18, so he will soon work it all out anyway.
- Can't decide if I should move some of the easily accessible cash savings into more difficult to access investments as a means of safeguarding against him blowing large sums of money on a whim!
e.g. it's easier to go into a bank and withdraw cash from an ISA than it is to sell shares/investments through a broker!
He's pretty level headed, and I don't think he would do anything rash, but you just never know .
I also feel like I want to make a big thing about how lucky he is/ how grateful he should be to his grandparents and how they wanted him to use the money for his education/future deposit on a house etc.
Has anyone had to have similar discussions with kids? What did you, or would you do?