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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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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:

Original poster

Scattybird · 10/03/2008 20:39

If you invest £400 pounds and you want that £400 pounds back in 5 years. That is what you will get.

OP posts:

wolveschick · 10/03/2008 20:40

My Mum always made me and sis share any winnings 50/50 as we both had bonds. I sulked initially at sharing my fifty pounds but was told that if sis later won big prize she would not have to share it with me so quicky handed over half the winnings. I do the same with my DDs now

milkgoddess · 10/03/2008 20:41

sb, how much would you ideally like to win?

milkgoddess · 10/03/2008 20:41

sb, and don't say as much as poss ! lol

pukkapatch · 10/03/2008 20:42

i woiuld put it towards their education

lalalonglegs · 10/03/2008 20:44

MF - if you were genuinely living in very reduced circumstances then I think it might conceivably be OK to move to a better house if that house was purchased in the children's names and you were prepared to turn it over to them once they were adult. You could also use the money to pay for school trips etc but taking the whole family away? No. I would consider borrowing a couple of thousand for a family car and paying it back over its lifetime.

I think it would be far more divisive - and not something the OP has explored - if she were to find that one child had won a million and the other/s hadn't. That really would keep me awake at night.

Alambil · 10/03/2008 20:45

Better off putting the money in a Trust fund or ISA as far as I know. My parents put £7k in one and £7k in another 3 or 4 years ago - they have both more than doubled in value (they have a broker that moves the money around for them so it never goes down).

My auntie has been pouring money in to the bonds and has never ever seen a rise in it's value - seems a bit of a waste of time to me.... but then, someone has to win!

Original poster

Scattybird · 10/03/2008 20:46

I don't really want to win. I WANT MY KIDS to win, just like I dream of winning the lottery on a Saturday.

I sort of think that if I put money into this, it's like playing the lottery but I don't lose my stake.

So if I had 10,000 pounds and put that in premium bonds, there is a chance that I might win a million pounds but my 10k is still there.

If my children had 10k to invest, I probably wouldn't put it all on bonds though. I am talking about mayber 1k which has been accumulated through presents etc.

OP posts:

expatinscotland · 10/03/2008 20:48

I couldn't agree more, Scatty!

We live in rented accommodation and can't afford a family home.

That would go a long way towards bettering my children's lives, so you'd better believe if they won that kind of money I'd buy a house with it.

Also music lessons, art lessons, private help and therapy for SN DD1, tutoring, etc.

16 year olds on the whole don't know what is best for them.

I do.

Crunchie · 10/03/2008 20:50

SB I suppose it depends on your current situation. For me it would be a nono, money is the childrens. I remember being 7 and having a national savings book and premium bonds (never won mind) and that was MY money. My grandparents died when I was 5 and 7 so actually that ££ was my inheritance. I knew all about it, signed the books and everything. It was MY money to have when I was 18 to buy a car or a house. I was adement then and I did save that money. I did buy my first car, and then I sold it to go travelling. I also got more £ when my last grandma dies when I was 14 or 15. I rememebr choosing where the £ would go with my dad. I decided that a bond for 5 years would be the best. I had £5000 and at 18 or 19 I got about £6 or £7k back. I used the interest towards my travelling and again reinvested the lump sum. That lump sum of £5000 has been invested again and again (usually spending the interst on maturity) but now it is worth £14,000!!(if I hadn't spend the interest it would be twice that !!)

I suppose what I am trying to say is I rememebr for a young age being taught about savings and I knew they were mine. I wouldhave resented ANYONE spending MY money.

BTW my kids are also pretty good (they are 7 and 9) and they KNOW they have savings accounts, we get them updataed and they KNOW it is for a car/house/travelling/university.

Original poster

Scattybird · 10/03/2008 20:52

Oh I want my kids to win the Million, so we can pay off mortgage (not a huge one). I would spend about 30k on improvements. We would have a motor home (My son really wants one) and a better car. We currently have an x reg car but we do own it outright.

I would put 250k for each child in trust and that would be about it, oh and I wouldn't slave anymore, but would train to be an accountant through the OU.

God I hope we win.

OP posts:

Crunchie · 10/03/2008 20:52

BTW scatty you would be better off investing that money though. Average returns on premium bonds is about 5 - 6 % average returns on a stock market investment over a long period of time is far far higher (see my previous thread £5000 = £14,000 (that last lot is in 7 years)

expatinscotland · 10/03/2008 20:52

There's no way I'd make them experience homelessness or moving from pillar to post potentialy twice a year when there was ANY sort of money for things to be otherwise.

SenoraPostrophe · 10/03/2008 20:56

crunchie - those 7 years include the abnormally high years we've had recently though don't they? premnium bonds are a safer investment.

I buy dd's premium bonds in my name to avoid arguments.

MotherFunk · 10/03/2008 20:58

Message withdrawn

milkgoddess · 10/03/2008 21:09

sb, my dh is an accountant, you could still do this even if you do not win.
and you can have a very nice life too.

did you know you could get a job as an accounting assistant or trainee accouting technician then do a training course called aat? you can earn quite good money as a trainee accounting technician then when you have the aat qualification, you can then start one of the accountant courses such as cima or acca. you will also be exempt from some of the cima exams if you have aat.
if you take this route you will get a job as a trainee accounting tech then trainee accountant you will eventally end up a professional qualified accountant and will have earn't good money in the process with no debt have good work experience to boot. then when you are a fully qualified accountant the good times really begin!
most people do not realise how easy it is

cat64 · 10/03/2008 21:41

This reply has been deleted

Message withdrawn

MotherFunk · 10/03/2008 21:48

Message withdrawn

stealthsquiggle · 10/03/2008 21:54

DH and I agreed that anything up to £5000 would go back into Premium Bonds. Beyond that, for a really big win, it would go into education/mortgage/other contributions to general DC/family welfare.

SueW · 10/03/2008 21:54

www.moneysavingexpert.com/savings/premium-bonds

Article on moneysavingexpert.com about premium bonds.

SueW · 10/03/2008 21:55

DD's prizes are auto-reinvested.

Original poster

Scattybird · 10/03/2008 21:55

MilkGoddess, I was looking at the OU today. I currently earn a pretty good wage doing an unskilled job.

What I would like is choice. I like book keeping etc and am pretty good with Math. So I thought about doing the OU course which of course will cost me about £2k but once I am through this will be able to work as a certified Accountant. Is this right.

OP posts:

blueshoes · 10/03/2008 21:56

I'm with crunchie. Financially it makes more sense to invest the money for the children (say in equities) and then buy the lottery for yourself if you like a flutter.

SueW · 10/03/2008 22:05

But it's fun - if you can afford it - to do a bit of everything.

Our investments for DD are an equities based one, premium bonds bought when she was v young and prizes re-invested, a long-term savings account, an instant access account and a piggy bank!

When we are broke I put the investment into each one down to the minimum e.g. standing order to her savings account goes down to £1 a month. It's not like it's 'hers' IYSWIM or that I have committed to save a certain amount for her or reach a target, it's just something that I hope will provide a useful sum for her in the future.

milkgoddess · 10/03/2008 22:24

sb, no that is not right.
to become a ccab accountant you need to do a professional qualification. eg cima cipfa acca etc.
this costs about 10k which is why its best to get a company to pay it for you.

entry req usually aat or relevant degree you can then qualifiy in three years
if you take two modules at a time.

if you do a degree in accounting with ou or similar this will not be a professional qualification, however you could then go on to do onto either cima cipfa or acca
these are the professional qualifications.this would take an additional 3 years approx.

if you took the route i suggest, aat then cima it will take you 6 years but you will start on about 35k and you should always be able to get a good.
have you looked into trainee accountant jobs or trainee accounting technicians jobs? you want on that inclueds aat training.

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