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

We've done this and both DDs are now over 18. They've both kept it as contingency money to help them through uni. DD2 will use some on driving lessons if need be, though she's trying to work extra to cover that. Both far more useful than the tat she'd have bought as a child. Don't automatically assume they'll waste it at 18. In fact, if you teach them to be responsible as they grow up it's likely they'll use it wisely.

We are putting ours in our little girls saving account. There if we need it for anything but would like her to have a nest egg for the future.

I put it into DS’s bank account which I will either let add up for something he may want or need in the future, or I’ll get him some toys that he’s asking for.

For example, DS (3yo) has gotten a few of the Imaginext DC sets for Christmas but there’s some characters that he really wants to go with them, so I’ll use his £40 gift money to get the figures he wants, and then the remaining tenner will go towards his existing savings

We often use gifted money for either a year zoo pass or swimming lessons. Some kind of activity that they enjoy.

All the cash goes into her savings account at the moment. I'm hoping she never finds out about it, as I intend on using the money to fund an excessive school trip when she's a teenager - school I work in does amazing trips all over the world and I benefitted so much from a school trip to the states at 16.

At the moment I’m putting any gifted money into my daughter’s stocks and shares isa. I originally had a cash isa for her but realised inflation over 18 years would drastically reduce her spending power later on. Once she’s a bit bigger I’d like to get her into the habit of putting half into her long-term savings and half into a piggy bank and then a children’s bank account when she’s allowed. I want her to learn to manage her own money and make mistakes while the stakes are low. I’m not sure yet what age is most appropriate for that though. I see money for children as a learning opportunity as well as a gift.

For me personally I wouldn’t want to spend monetary gifts on essentials but I’m in a fortunate position that I don’t need to. I would be totally happy if money I had gifted went on essentials as long as they benefited the child in some way even if indirectly.

Ours almost always need clothes, they are growing at a disturbing rate! So any cash they get goes on some clothes.

I have always put my children’s money into their bank accounts.

The 4 year old has £1700 now and the 2 year old £1300! They have another £100 each for Christmas (accumulation of smaller gifts from various people) for me to deposit.

I won’t let them fritter it away, but if they want something “proper” like a decent bike or have a particular hobby when they’re older they can use some of it. But I’ll try my hardest to keep it intact for a car or house.

I’m another one who puts it into their savings accounts, which are held in trust in my name. One child is now over 16 so has opened a help to buy ISA and we are transferring in the maximum allowed each month.

I save all their child benefit too, as I’m fortunate enough to not need it to live on. It’s to pay for university education, deposit on a flat or similar.

I’m really sorry but I don’t think you should be spending it on clothes or shoes as some other posters are. You as the parents should be providing basics such as clothes and shoes for your children!

Save or put together for membership of somewhere they like going - nice to be able to send photos of the happy faces on days out to the giver.

Cash from GPs goes into savings. Cash from friends they can spend. I have done this since DD was 18m. She has just turned 4 and spent £30 in Asda on fancy dress clothes (and £120 went into her ISA).

If mine had £40, I'd let them spend £10 and put the rest into their bank account

I would just spend it on gin for myself. What the fuck do they know about money
Don't even tell them.

Savings account and teach them the clause of money by giving them an allowance and debit card as soon as they are old enough . That way they get their mistakes out the way while it doesn't matter.

Value not clause

I always let Dd spend it on her own choices.

It's one of the reasons I don't gift money. I don't want the money to go in a savings account to be used years in the future. I would be giving money instead of a physical gift, not to be stuck in a bank account. So I always give a proper gift and refuse to hand over cash.

Jessikita not everyone can afford the cover basics. Should the dc get a new toy which they'll probably lose interest in in 5 minutes or a new pair of winter boots which will keep them warm and dry in bad weather? If I give cash it's so the receiver or their parents can have It, I don't attach expectations of what it will be spent on. If I want to get a specific thing then I would purchase that instead.

My dcs' money goes in savings for now. I am lucky enough to be able to cover basics. My intention is that they can use the money if there's something they want out of the ordinary, or save it towards a house. My Dd wants her own skis so she's using some of the money towards them as she'll get a lot of use and save on rental fees.

It goes in their bank accounts unless there is something they really wanted and didn’t receive.

Surely it's a gift to the child so up to them what they do with it. I've given my two nephews money since they were about 6. One is a fritterer and one a saver. I might also give the parent money to treat them or buy something special but that is different. Would you put away any other gift given to them?

I’m really sorry but I don’t think you should be spending it on clothes or shoes as some other posters are. You as the parents should be providing basics such as clothes and shoes for your children!

Me neither hence I no longer give cash. It's supposed to be so that the person can choose their own gift or put towards a larger item. It's not there to fund essentials as the parents don't want too. Neither do I want it sat in an account for years with no access by the child.

Easier to gift an actual item so that the chid actually receives it.

Yellow that's my point. Gifts shouldn't be given with conditions. If you as the giver have a specific idea of what it needs to be spent then you need to purchase that instead.

As long as it is being spent for or on the child then, if I've given cash, I don't mind what it is spent on.

Obviously I would be upset to think I'd given cash for a child to have the adult spend it on something for themselves.

Junior ISA here :)

Any cash gifts went into their savings accounts. They are both over 18 now and I have removed my name from the accounts. They both still continue to save in these accounts.
I have stopped giving cash gifts now after reading on here on many threads the number of parents who are happy to spend on things I would consider their responsibility to pay for. I know once the cash has left my hands it is not my call to make anymore so i just don’t give cash anymore.

Spend half and save half, easy!