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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think that if my children won money on the Premium Bonds (hypothetical)

63 replies

Scattybird · 10/03/2008 19:46

That until they are 16 I would be able to use it to better our lives if I thought that it was right.

I have been reading the Thomas thread and having had this conversation with friends recently, some said, no, that all of the money should go into a trust fund as it's owned by them. To an extent in the other thread this would be the same as 'the gift was bought for X so it belongs to X'.

Personally I would pay off mortgage, and be a SAHM if they won big bucks.

Anyone?

OP posts:
morningpaper · 10/03/2008 19:48

I often ponder this

A friend of mine's children won the premium bonds and they built an extension. Actually, that makes EVERYONE'S life better and adds value to the house (which may eventually be their asset)

I think I would do the same!

Hulababy · 10/03/2008 19:49

Hmm - tricky one. Would depend on how much they won, how they were purchased and what my financial tuation was at the time.

I would put at least some of it in a trust fund or other saving account for DD though

pedilia · 10/03/2008 19:50

I think if it is geuninely being used to better life for the whole family then there is nowt wrong with that!

If it is being used to buy shoes/handbags or suchlike then no

MotherFunk · 10/03/2008 19:54

Message withdrawn

Original poster
Scattybird · 10/03/2008 19:56

Well, since I have asked close friends/family not to buy toys any more and give to their premium bond fund (you have to have £100 pounds every time you buy them) I thought that their comments were quite fair. BUT can you imagine slaving away and chasing your tail and paying childcare if they were to win £a million pounds. When one said that technically it would be their money, I do agree, but it would be silly to continue slaving to Mr Corparate if I could just slave at home painting & baking cakes and generally being there for my children surely.

This is only hypothetical but it's doesn't stop me looking at the website now that we have a few quids worth of Bonds

OP posts:
WanderingTrolley · 10/03/2008 19:57

Interesting debate...

I think keeping it all for the child to use at 18 might be disasterous - 18 is too young for most to be responsible with it.

I think you can't go wrong if the money is spent on the children's education.

On further thought, I think I would go for the extension. Ultimately, the children will inherit from the parents, so surely it's better to invest the money wisely, in a way that benenfits the whole family.

pedilia · 10/03/2008 20:01

wandering- By the time we are pensioners and have paid our stays in a nursing homes there will be no inheritance

southeastastra · 10/03/2008 20:02

no it would only bring trouble once they're older

milkgoddess · 10/03/2008 20:02

sb, i think that would be wonderful for your children to have you there for them all the time and baking treats and painting etc. if you won a million you could pay off the morgage sah and save money for them.

sounds like a very good way to save anyway

hope you win, can't think of a nicer reason for a big win

sending you winning dust !!

MotherFunk · 10/03/2008 20:05

Message withdrawn

lalalonglegs · 10/03/2008 20:06

NO, it would be a terrible idea. Children may appreciate you being at home when they are little but they would resent the fact that you had eaten into THEIR savings to do it once they became surly teenagers - isn't this the sort of thing that Hollywood child actors end up suing their parent-managers over as soon as they hit 18?

Iota · 10/03/2008 20:07

online or at the PO

Original poster
Scattybird · 10/03/2008 20:09

Thanks MG

The money is theirs once they turn 16

SEA, they will get everything I have anyway. Why do you think it will bring trouble when they're older?

Oh and my plan would only be to stay at home until I thought they had stopped needing me (you know when they start taking drugs and stop talking to their parents etc)

I wouldn't be building an extension.

I would put half into a trust fund equal parts as well. As we save their money and buy them alternatively for each child. So a has money used from b etc

OP posts:
MotherFunk · 10/03/2008 20:09

Message withdrawn

Original poster
Scattybird · 10/03/2008 20:10

You have to fill out a form through the post office and you must submit £100.00 so a big present to ask for from one person.

They post through the Numbers and that's it. Away you go.

The good thing about them is they are still worth what you paid no matter what, plus your child could win something from all of the interest that they generate. But if you want to cash them in, then you get back that £100.00.

OP posts:
Original poster
Scattybird · 10/03/2008 20:12

Anyway, like I said it's hypothetical and we haven't won yet. I just wondered how these things work.

OP posts:
Blu · 10/03/2008 20:13

I would only hijack the money if the family as a whole and the child in particular were living in very disadvantaged circumstances, and use the money to strictly address those circumstances.

I think if I had more children I would put all their bonds in a pooled account and they share any winnings, though.

MotherFunk · 10/03/2008 20:18

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gemmiegoatlegs · 10/03/2008 20:23

i just asked my dad to dig out my old premium bonds as the address hadn't been changed on them for 14 years. I checked the numbers and not a sausage...not in 14 blardy years! our forfathers would have been better putting the money in the bank - at least it would have generated some interest!

But as for the question, yep, I absolutely would spend their money if we were in need. Not squander and maybe not spend on house, car etc. but certainly on school trips abroad, equipment and lessons for the dcs and holidays for the family.

Ripeberry · 10/03/2008 20:31

My DH believes in Premium Bonds, he has over £10,000 of them and every month he "wins" at least 2X£50 cheques and sometimes as much as £200, but he's NEVER had anything over £500 in 20yrs or so.
I've got £300 and i've had them for 5yrs and not won a penny!
C'est la vie!
AB

fruitfulinotherways · 10/03/2008 20:31

And in any case, don't buy bonds, put the money in an ISA!

Are Premium Bonds Worth It?

BrownSuga · 10/03/2008 20:32

I'd split it 1/2 for us, 1/2 for the kids. You put a roof over their head and raise them, why should you pay a mortgage when it's completely unnecessary. I figure they'll get it back when I'm dead anyhow.

SueW · 10/03/2008 20:35

DD wins lots on the Premium Bonds but never a biggie. She has at least trebled her holding in ten years which is much better than I think you are supposed to do - so we keep our fingers crossed!!

If she won I'd put aside the amount required for her education - we've accepted a place for her at an independent senior school already and, although we're prepared and able to pay for it, I would set aside that money just in case.

She has just come in and looked over my shoulder and we've discussed the ever-present 'pony' situation and I have told her that NO, we won't be buying house + stables + pony but maybe consider a pony on loan.

She will now be avidly watching the post for the first 3-4 days of each month

MotherFunk · 10/03/2008 20:38

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catzy · 10/03/2008 20:38

Me and DH have discussed this and decided if DS's won big we would invest and use the interest for the family.

Oh how we dream