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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Not have a child savings account

16 replies

VAVAV00M · 07/05/2013 22:21

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.

OP posts:
Original poster
VAVAV00M · 07/05/2013 22:23

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

So slightly selfish

OP posts:
purrpurr · 07/05/2013 22:25

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

seesensepeople · 07/05/2013 22:26

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 · 07/05/2013 22:27

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 · 07/05/2013 22:31

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

Pointless!

Original poster
VAVAV00M · 07/05/2013 22:32

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.

OP posts:
NotYoMomma · 07/05/2013 22:33

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 · 07/05/2013 22:34

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 · 07/05/2013 22:36

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 · 07/05/2013 22:37

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

Xales · 07/05/2013 22:40

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

If another doesn't sod them?

Original poster
VAVAV00M · 07/05/2013 22:41

I am a bit dim, sorry.

Will be pissed if they blow the money though,

OP posts:
rambososcar · 07/05/2013 22:42

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 · 07/05/2013 22:46

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 · 07/05/2013 22:50

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 · 07/05/2013 22:51

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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