To give my kids some inheritance to splurge and enjoy?

[tricerotopsrule]

I have inherited some money after a parent died last year. I have earmarked a chunk for my kids for their future (age 16, 15 and 12) but we are about to go for a city break to London and I’m in a dilemma about whether to give them a decent sum of money to enjoy in London and if so how much?!

I want them to enjoy the freedom of being able to buy some things there to enjoy and in memory of grandpa but also don’t want them to get too much and piss it up the wall on nonsense! My dad was a saver and I hear his 'sensible' voice and him shaking his head at me but life is for living and enjoying.

Any advice? I’ve no idea what might be a reasonable sum to give them each for a short holiday. Thanks

Id do a 1k each shopping trip, i think 1 k is plenty then maybe just spend some on stuff they need more than anything else.

I think its more important to save for the future in case they fall on tough times. for example driving lessons are expensive! or maybe one will want to start a business? etc. It seems a lot of money but itll be blown so quick if your not careful.

I think 1-2k is A great fun time! :D

If you are paying for all the activities and food etc while you’re there then £250 each is perfectly fine.

It’s just that the activities can run up quite a bit, some are £30 + and if they want to see a show they can be expensive if you don’t utilise offers etc.

Not sure what you have planned but the Harry Potter play [2 parts x 2.5 hrs each] is really good [I'm not a fan of HP particularly] but mega expensive.
So one thing you could do is discuss the higher end of the experience market [West end show, afternoon tea at F&M's etc] and spend some of the allowance from that.
My gran died and left me £500 but I was about 20. I got a lovely pair of earrings and remember her every time I wear them. I think it's really tricky to splurge a lot of cash on stuff that will be outgrown and discarded in a very short time so if you can't sustain £200 trainers it would feel like a waste of money to me.
My inclination would be to do something like £150 and leave them to it. And hold some back for an 18th or 21st birthday present from your grandad. I think the stocks and shares ISA is also a great alternative and would please your Dad too. £500 each into one and watch it grow [hopefully]

I hate the idea of inheritance... it basically ends up with people hoping you die.

Do it. Life is too short and all too soon they will have bills to pay. Its a nice treat to just waste a bit of money on stuff you wouldn't normally

Have you thought about putting deposits on a couple of investment properties? It would be nice for them to get their foot on the ladder and it means your dad’s money will leave a legacy

That’s such a weird way to look at it, I’m sure nearly everyone who inherits would rather have their relative than the money.

OP, I would give them £250-500 before London and let them know they can take it with them if they want- maybe ask if there’s any particular shops they want to go to eg. Lego store, Tiffany’s, depending on what they’re in to!

Not always. I will inherit when DM dies. I’m in quite a bit of debt and struggle financially but I’d rather have DM forever than the money.

Yes I would ! Years ago when dd’s were small, they got €1000 so 500 each when a close family member had died . It was said that it was to to use for something fun. They choose smyths (toy shop )

so we got a big trolley and they spend the whole 1000 on toys . It was honestly such a joy to see them loading the trolley with whatever they wanted ! It’s not something that I usually would encourage but it’s what they wanted . They still talk about that day fondly !

@C1N1C it's definitely a conflicting feeling. We are in this situation. It's obviously nice to have extra money but not at the expense of someone's life and we are giving lots of thought as the best way to use it. But what's the alternative? It's surely better to go to the family than the grabby government. As a parent I hope that I have something to leave my children to make their lives a bit easier when I'm gone.

What are they going to buy in London that they can't buy elsewhere?

If I saved all my life I'd be pretty pissed off by my money being wasted on London prices for stuff?

I can't rqally think of anything nowadays thats only available, maybe a Harrods carrier bag but what else

@C1N1C well yes it would be better if my dad was in good health still here and I never wished him dead just to get his money, that's a bizarre thing to suggest.

He saved largely I think to give others a helping hand which is why I've earmarked a large part for my kids future should they want to go to uni, use as a house deposit etc. We wouldn't just fritter it all away but I like the idea of enjoying a small part of it too to live life to the full as this was something my dad couldn't do in his final years as he had an hideous torturous illness that robbed him of everything.

@TheBeesKnee the £20k ish budget for holidays is for two separate holidays, I realise there's no way we could get 4 or 5 big holidays out of that!

I wouldn't focus on London spending money. That sounds like an invitation to spend for the sake of it.

I would set them up with some savings as a PP suggested to invest for themselves towards something like driving lessons and learn about managing savings/investments. Not so much it would be a disaster if they make a loss or splurge it in future.

Then I would give them a few hundred each to buy themselves a gift/experience to remember grandad by, but encourage them to think carefully about what they spend it on.

I'm assuming you're covering all expenses and attractions etc, so I'd probably give them a couple hundred each and head to.Oxford Street. It doesn't go that far for nice clothes and shoes!

When my great grandmother died she left my nanna and mum and aunty some money.
Enough for my nanna to take all 11 of us to Disneyland and still have allot left over. We travelled for a month and my mum and aunty decided to give all us kids $1000. I remember mum telling us $500 was for saving and $500 was for America.
It was really nice and as we brought things along the way, I remember thinking thanks in memory of my great grandmother.

I.might also if budget allows let them pick one typically London attraction each (London Eye,.Tower of London, Madame.Tussauds etc) to go to as a family.

For teens / pre teens? Hardly.

I’m going to go against the majority and say don’t piss it away for the sake of it. Expensive trainers or whatever don’t last, and the brief joy of buying something expensive isn’t really that valuable IMO. If you have the money to spare, the amazing things you could do in London! Go see a few shows, eat at some amazing restaurants, see the sights, try some crazy food… I dunno I’m suddenly drawing a specific blank but I’d be going for memories over things.

Love the sensible idea of showing the kids how to earn interest on savings.
I'd have thought £250 each would blow their minds on "something to remember grandad by".
But I'm boring and practical and value longterm security over a quick blast of cash easily forgotten. Probably inherited the mindset from my parents who also liked to save. From which I have gratefully benefitted.

I’d give them £1,000 each - I took that from recent inheritance for me to get a treat and invested the rest

My parents recently did this after selling my grandmothers property and gave each of their grandchildren the same sum each (several thousand). My 2 are elder teens. My eldest just passed his driving test so has bought his first car, insurance etc. my youngest will turn 17 soon so has saved the money and may decide to use it for a car. My brothers kids are slightly younger so would imagine their was put into savings for when they are older.
it was a lovely and unexpected thing for them to do but definitely well received by my kids but they were told not to waste the money

Take the kids on a balloon ride. They will remember it all their lives.

I’d plan an activity that your late father would have appreciated himself or enjoyed hearing about or praps something that reminds you of him. Obviously, only if that is a translatable possibility.

When my bro passed away we went to IWM Duxford because he loved it there.

Re Dads being good at saving. Mine was too and because he managed to live independently into his 90s he didn’t blow it all on care. The most important thing would have been making him comfortable had it reached that point though so it’s always worth saving if you can.

To be honest I wouldn't give them it just for London, there might not be anything they want to spend it on and they might just spend it for the sake of it.

This, 100%

I would say to each of them that you want them each to have £500, £300, £100, £1000 - whatever amount they decide, as a last 'gift' from Grandad, and that it is theirs to spend on something they really want.
Your 16 yr old might be eying up driving lessons for example. One might want a season ticket to their favourite team, or one might want an electric guitar, or even to go on the school ski trip you've never been able to afford. Obviously I don't know their interests or what they already have or what they'd really like.

But the point is, they get to think of something they want as a last gift from their Grandad, rather than feeling they've got to go out and 'look for something to spend it on' in a set few days coming up now. I really don't think that is a good idea.