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

Don't believe that comment about them being trustworthy at 18if you bring them up right. I work with families, and obviously have the usual amount of life experience as well. It is pure luck, sorry. Siblings in the same household can grow up one a saver and one a splurger. That's why mine will have to their own savings account from 7 but that won't hold any big money I manage to save for them! In fact it's money I save 'for the family' which I hope might be uni / help with housing, but im reserving the right to decide! Present money is different. They can splurge that even if I don't approve.

Savings account, we started them when both ds were born and put all money in from gifts at birth, christening, Christmas, birthdays. If we need to buy something for a ds we will take it out of their account if it's a big cost, like a car seat for example. Any leftover child benefit goes in there too.

It never even occurred to me about access when they're 18, I'll probably change them to joint accounts requiring my signature to withdraw it! As going by the generous gifts ds1 has been given in 2.5 years there will be a nice amount in there, not to be pissed away in niteclubs. I can't imagine letting a toddler decide what it's spent on.

Savings account. Debit card when aged 12.

Spend half and save half in their bank account.

It goes in their bank accounts.
They get bits of pocket money off grandparents they can save up and spend but any birthday or Christmas money goes straight into their bank account.

When my kids were that age I did things like buy an annual pass to somewhere we liked like a local kids museum.

Kids are older now and manage their own money

I keep it aside and let them spend some of it in the toy shop on holiday and the rest is saved up towards big garden toys in the spring/summer eg trampoline replacement or new accessories for swing set. They are old enough to understand about spending /saving now and i like to give them the chance to learn. One is a spender, one is a saver and one considers her options !

Depends how much and how old they are.

My two year old got cash from her GG, but it was only £10. So I’ve found a mini hockey stick for her that’s under that - hopefully she’ll love it!

I always put it into saving accounts for them.
They really appreciated it at 18, FAR more than they would have when they were little.
That's a lot of driving lessons or whatever they want at that stage.

At that age I would pop it into their bank account. My older two are 5 and 7 and they keep any they get to spend.

Savings account. It won't be that much money when they are 18 if it's only £40ish birthday money each year. If they blow it they will have fun and learn it doesn't last, if they put it towards something useful even better.

Why have you not even considered saving it?

"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"

But would that really be worse than them blowing it on (i.e.) crappy toys now?

Get them an account, teach them how to be sensible with money and to save (at least some of it) , and they're far more likely to act responsibly with any money they have when they are 18.

Bank account

Always building society.

At that age I used to use it to buy them a toy. I didn't really think about saving

Once DS was old enough to look around a shop we'd take him to the shop and let him choose - I remember that being the most amazing thing to do as a child so that's why I've carried it on.

Streight into their savings. They are lucky in the fact they have enough toys. Last thing I need in my house is more.

1. You can out it into a bank account without giving them access at 18. Set it up in your name but don't touch it.

1. Does it matter what they do with it at 18 if you're going to let them fritter it away a tenner here and there on ice cream/ pocket money toys anyway.

All went in the savings account at that age. It's only now kids are aged 9 and 7 that they get the concept of having some money to spend. If they get cheques, I always put them in savings but they have the cash if they have something they would really like.

Invest it in the stock market with funds

If a large sum then in a bank account or keep in an envelope to use as and when eg today money was used to buy tickets to theatre as friend couldn’t go and I didn’t have cash to pay.

My two dd's aged 2 and 4 have bank accounts, we pay a direct debit of £10 a month into each plus any birthday and Christmas money.

I assume it'll go towards their first car but it'll be up to them at 18.

At that age, if my dc were given money it usually went into their bank accounts. They usually had far too many toys as it was and didnt need or want anything else.

my dd was given £70 for her birthday last year when she turned 5.... she also has a jan birthday so had got all she wanted at christmas. i took her shopping and she chose a styling head which she had been asking for for a while and agreed to put the rest in the bank until she wanted anything else....as it is she never wanted anything else so its still in there.

my ds is older and is usually happy to put in his bank and save up for something bigger during the year. Last year he bought himself a big lego set for almost £200 and spent days building it...he enjoyed that far more than a small set which would have lasted a hour or so to build.

I would say if there is nothing they need or want then put it away in a bank or money box and save until they do want something. With a jan birthday it is likely that by mid year they will be wanting something else or tastes can change or develeopmentally they could need something a bit more challenging.
I would never use their christmas money on stuff like socks or clothes as you say you should be providing those things.

Savings. When they're older they will want to spend it. From about age 4 I got them to approx half it. Half in savings half to choose something to spend it on, though to be honest they generally only wanted to spend around 20 on things until they got 7.

Your comment about access to cash doesn’t make sense. You’d rather spend it now than save it for them. . It’s their money to spend, not yours.