Money, money, money

[Pastnowfuture]

This is a question for all you experienced parents. I am a first time mum with a beautiful baby boy. My parents want to put £20 a week into an account for him.

My question to you is whether I should go for one in his name where he gains full access at 18 or one where we have control and give it to him as needed eg first car. My parents are by no means well off and I worry that at 18 he will get a lump sum and waste it on nights out/clothes etc. I feel I may have done so at that age as only became financially aware once I rented my own home at 21. There is another part of me that says it's his money to spend as he likes.

My parents don't have a preference. What are people's thoughts on this. Any one had any relevant experience?

We decided to set up two different accounts for ours. One they can access at 18 and one they can access when we decide they need it.. for car/ house whatever.
Like you, we didn't want them having access to a large amount and then frittering it away.

Much better to go for one you control until at least 21. You can always give it him before then if you want to. I don't think I'd want my DD to get large amounts of money at 18. It would most likely be spent on a tattoo or motorbike! I'd rather give money to support things I want to support - like driving lessons and top ups for university living costs.

I had a friend back when I was at at sixth form who got money for his 18th. He bought a car, then feel out with his parents (who were lovely - he was just being a dick at the time), and decided to live in the car. I think they'd have had more control over him if he'd not had the money.

My friend scrimped until her ds was 18 to give him a decent start in adult life.
8k.
He spent it all in less than 10 months with nothing to show for it.(at 18).
He had a great job and was set for life and never paid board.
Keep it in an account until 21 imo..

My 3 have a shared ISA which we said they could each access when they were 21 (so they didn't waste it on a new car!) - youngest is 21 next year and the older two have decided to keep it all together as it's making so much money! Not a huge amount but added to their own savings I'm hoping they may have enough for a house deposit.