My 2 got an unexpected inheritance at 17/15, though obvs didn’t get control until 18. I see so much on here about how young adults will waste an inheritance at 18, and it is a risk (they were beneficiaries in will of a distant cousin who didn’t specify an age).
However, we have used it to educate them, it has given us the springboard to help them with and discuss finances.
They already had S&S ISAs that the money is drip fed into, but eldest is now getting interested in researching and buying individual shares.
Both are currently in retail jobs waiting to travel (gap year/finished uni), putting earnings into a separate savings account on pay day and bringing back small amounts as needed.
We encouraged them to get a credit card to help their credit scores, as they will have the deposit to hopefully buy a house in 20s. They use them sensibly, for petrol, travel costs etc and move earnings back from savings to clear the bill each month.
They also had sim only phone contracts in own name at 18, also for credit scores.
Eldest has upgraded his current account to one earning interest, as he has realised it is better than most savings accounts.
We had helped DS get a small car before his inheritance came through, we helped DD the same but she got a slightly better one, using some of her savings. We suggested that she re-paid her savings from her earnings over next few months, to make her realise how easily it would be to fritter the inheritance pot.
My DS has just been asking me about Tax allowances, he has started a PT retail job after finishing uni, paid weekly, some weeks more than others, so varying tax.
He realised his allowance is lower than the normal, we found that HMRC were using bank interest details from 2018/19 and he must have had over £1k interest that year. Their money is sitting in 2/3 yr bonds until put in ISAs so they get interest as those mature, which can affect tax. He thinks 19/20 & 20/21 interest will be below 1k, so it will all catch up, but a good lesson in tax!
We have set up SIPP pensions for both, but also need to look at what their current employers offer. Even if they only build up a small pot, if it includes some employer contributions, and can then be moved to their SIPP when they leave, it will be worth contributing.
We will look at mortgages with them when the need arises, and make sure their deposits are protected if they buy with a partner.
I think ours are doing ok with their knowledge, but they have good role models, we have always been very careful and they are learning from us. We have a nice 4 bed house and cars paid in cash, but never stretched ourselves property wise as preferred to save for early retirement, which is now in sight at 56 & 57.
DH has a colleague who picked up a brand new Range Rover just before lockdown, but still working well into his 60s. Each to their own..