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Original poster

Premium bonds hypothetical question

6 replies

DeepfriedPizza · 31/10/2020 10:46

I was just putting more money into my daughter’s premium bond account and wondered what you would actually do if your child won a big amount.

It’s obviously their premium bond account so they should keep any winnings but what if they won £1m at 10 years old?
Would you improve your family life just now so they have the benefit of it? We live in a nice sized house but I would love to get a bigger house if I won but if my daughter’s account won the big money then I couldn’t use that.

Just looking to see what your thoughts are.

OP posts:

TeenPlusTwenties · 31/10/2020 11:22

I think I wouldn't put premium bonds in the names of my children if I wasn't happy for them to keep the winnings.
Doubly so if I had more than 1 child.

lurkingfromhome · 31/10/2020 11:35

I think I'd put the winnings in some sort of trust fund for them that they wouldn't be able to access until they were 18 or so. I'd use the intervening years to teach them about good money management and then would encourage them to use it for their education, buy a house, start a business, protect their long-term future etc.

mindutopia · 31/10/2020 11:42

Personally, I wouldn't want money like that going to my dc at 18. We do have premium bonds, but in ours names, not dc. I've been very explicit with all family members that they are not to leave large inheritances to our dc. If they want to leave them money, leave it to dh and I and we can make sure it's kept safely for them until they are old enough to need it. I don't think it's healthy for 18 year olds to come into loads of money, and I want them to learn they need to work for what they have. If we had money, from whatever source, and could then use it to help them buy a house at a young age, I'd gladly do it.

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Savings & investments

LindaEllen · 31/10/2020 12:38

I'd suggest there would be no point in buying them for your child unless you'd be happy for them to potentially win - and keep - 1 mil.

I would however have it put into a trust fund so they couldn't get at it until they were at least 21 (otherwise there's the risk of it being blown at uni).

After that, it's not really up to you to decide how it's spent. Well, it's not from 18 really, but I would push for 21 if at all possible.

Allywill · 31/10/2020 12:58

I occasionally worried about what I would do if one daughter won £1m and the other obviously didn’t. It never actually happened but once one won a thousand (they were around 9 and 7). I told them one of them had won (but not who) and they had to decide whether to have 500 each or one to get a thousand and the other nothing. They decided to share. I gave them each £20 to spend and put the rest in the bank. They still don’t know who actually won the money now and they are in their 20s now

Ormally · 31/10/2020 13:19

I'd include and ask my DC, but would put forward the idea of buying a house in a holiday area which would have good potential for sale in 10 years. Would use it as a family, possibly rent to friends too. Then plan to sell when ready and when DC over 18. Initially would carve out a car (and insurance) fund to mature over about 5 years also, and put the rest into long term savings.

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