To ask what you do with cash gifted to your kids?

[Monoblock67]

DS1 + 2 (aged 2 + 4) have been gifted some cash as part of their Christmas, £40 in total each.

I struggle with how to spend it each year, so can I ask, do you:

1. keep it till they need it for practical stuff (socks, clothes, shoes) etc. Which I’m not against but at the same time I feel a bit bad spending ‘their’ money on practical stuff when as a parent I should be providing it anyway.

2. put it towards their birthdays (both in January) so they can get bigger/more presents, which again feels cheeky

3. let them have at it and buy whatever they want, which results in meltdowns in the shop when they want a bigger present than they can buy, as they don’t ‘get’ the £40 limit (well the big one does but the little one doesn’t)

4. let them have at it and buy whatever they want which results in more useless clutter

5. suggest what they buy-which I don’t particularly like as as child my mum forever ‘told’ me what to spend my money on

Help!! I’m driving myself mad over something so bloody ridiculous

I buy them all new clothes as they don't need any more toys after Christmas

Save it. Both sets of GPs put money into DC accounts for Christmas and Birthdays. They will be able to access it when they are adults.

Bank account here too.

Dd is 4 and fully aware that things cost money, she has a savings account and some goes into that and she gets some to spend on toys she wants. When she was younger we used it to buy shoes, winter coats etc. She will ask to save her pocket money for something she wants and will ask for extra chores if she wants extra.

I let them buy what they want.

We save it up to buy bigger treats once the money has accumulated eg we bought a lovely big wooden playhouse for our garden with money we'd saved up from Christmas and birthdays over a couple of years. We also put money by at Christmas to buy toys for the garden once the weather improves. Saying that, they are only 4 and 2 and while I'll encourage them to save, I expect in a few years time they'll want to buy stuff them self which they'll be more than entitled to do since it's their money.

Thanks very much for all your suggestions. A savings account is definitely something I’ve considered but still wavering over them having unrestricted access to it when they’re 18 (if I’d had that at 18 I dread to think what I would have done with it 🤣)

Depending on amounts half either saved/clothes and then other half to spend.

When they were little we used it as a part contribution towards a bigger present eg trampoline for the garden. Now theyre older it goes into their savings accounts and they withdraw it when there's something they want to buy. Ds2 has just bought himself a tablet this way.

I've always done a "spend half/save half" with money given to my DC. Then they have some money in their money box for when they see something and they learn to save for long term.

My son is 4 and it all goes into an account in his name I have full access to.
When he’s a bit older and aware we’ll spend half save half.
If necessary I’ll transfer half of everything he’s saved by 16 out to a secure account and let him have half to prove he can be responsible with then the other half for something specific or when older still.

OP the other thing you could is buy premium bonds with it when they have accumulated enough. They can't access it then until they're an adult or you could leave it until you think they're old enough and responsible enough to spend it wisely and not tell them they have the bonds until that time.

We put it away to save too! Sometimes their long-term savings, but usually another account to save for a more expensive toy/day trip they want to take. Last year the money went towards a trip to Euro Disney (a day trip from visiting family that we otherwise wouldn't have taken). DC are aged 4-6, when they're a bit older we'll start asking them.

Ds has a savings account so we put some in there and the rest goes to pay for his riding lessons, which is the only thing he wants anyway.

Bank account here too.

DS(11) has his own bank account so he pays it all in himself. He’s actually ok with money and if he wants something he will buy it.

Anything but 1), 2), or 5)

All in the saving account. Whats not to understand

I save all of it, purely because DS is only 15 months so he can't ask me for anything and I wouldn't want to buy things he needs out of it. He now has 2.5k in the bank (more money that me and DP have put together), from Xmas and birthdays and my DM gives him £20 a month 'pocket money'. It's in a separate savings account in my own name, so he won't be given instant unlimited access when he turns 18. Am happy to give it to him for driving lessons/a car etc when he's old enough but will not be letting him fritter it away and have nothing to show for it, because if it carries on at this rate, 2k for every year of his life, he will have 36k by the time he is 18 😮😮😮

I didn't go for an ISA due to the 18 aspect. Instead we have a Junior Nationwide account which the woman assured me would remain within my control for as long as I wanted it to.

We save some and spend some on a day out that we wouldn't be able to afford otherwise. If dc needed/wanted something bigger we might put the money towards it, in thank you cards it would say 'the money has been put towards x new Lego set or bought a helmet for their new bike' I think people like knowing what it's been spent on if possible!

I have always put any cash gifted to my children into their savings accounts. X

Savings or put it towards an annual pass to a local attraction that you use a lot . No problems with children having access to bank accounts when they are 18 if you have bought them up to budget and be sensible .

My kids have far too many presents and are spolit by relatives all year round. I feel no guilt in squirrelling away a gift card and spending it on clothes for them or popping it into their bank account for them to buy a house. If the giver wants them to have a ton of plastic crap they can buy it themselves!

I've always let mine spend it. It was given to them in lieu of a gift so is theirs. Now they are older they have any cash transferred to the own pre paid cards to use as they please.

I've never dreamed of spending it on essentials etc as it's not my money and I doubt the giver wanted it spent on things parents should buy or using it so the parents didn't have to buy birthday gifts.

Having read so many times what parents do with cash gifted to children I no longer gift cash or vouchers which is a shame for the children but sensible as at least with an actual gift they get it not the parents.

I do a mix, depending on the intention of the giver. My parents gave us a generous sum on the birth of each child but made a point of saying it was for us as parents, if we wanted to put it towards the mortgage/ gas bill to extend maternity leave, that was fine, it didn't have to be spent directly on the children. We have had a few precarious months and would have used it if necessary. Some family members send a cheque to us before birthday/ Xmas, I choose and wrap a present and bung the change in an account which is actually in dhs and my name but is considered 'theirs'. When they get to 7 they will get their own account. Someone else in the family sometimes gives them a few quid in their hand - this is pocket money to spend on tat I won't buy them. If things get tight I would use the kids account money to cover things I couldn't otherwise afford for them, if not they will have a few quid towards driving lessons or travel or uni when they need it. If I dipped into it for grown up things (new car or financial emergency) I would replace it at generous interest - rather pay it to my kids than the bank!