My partner and I were talking about trust funds and saving money for your children for when they have finished school. He thinks its too American and that he doesn't want to do that because he had to pay his way himself so why shouldn't our kids, he thinks its a good lesson for them on how to appreciate the value of money. I think its a good idea to have some money saved for them. What do you all think? Or do you have other ways to help them out like helping buy their first car etc instead of money for uni/tafe?
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My ex bought my older 2 kids a car its been a nightmare! They haven't even got their Ps yet or full time employment and they need to pay rego, insurance etc. My daughter lent hers to her aunty who hit a roo, the car is now undrivable and has run out of licence. She has a $600 fine for not returning the plates, she is 18. My son is 19 and only receiving austudy and struggles to keep up with the cost of the car. He is looking for a part time job on top of studying. He just bought them the cars and left them to it! I have told my younger 2 they are to say no if their father ever so generously would like to buy them a car, wait until they have finished studying and have full time employment. They don't need the stress of a car when they are young. I do agree with your husband with money as well, it is much more appreciated and they learn to handle it better when its their own money. If you really want to give them something wait until they want to buy a house and help them out with a deposit, but don't tell them until they are actually looking at houses to buy.
I think it's a good idea to teach kids the value of money. Having money set aside for them to go to university is a great idea. However if you are sacrificing too much of your wage and are scraping by then No!! I moved out of home at 17, now at 33 I own my own car, I didn't go to uni, I don't live with my mumma sponging off of her and making her struggle like my siblings do. My partner and I are making our own lives and building it without hand outs. Would I have loved a lump sum or enough money that I didn't have to choose between higher education and survival I probably would have but then I'd be an adult still living with her mumma at 30, still liv Ng in her pocket and not able to be a real adult who takes responsibility for themselves and everything I want and need. Nothing is stopping you from putting aside money from your budget for your kids future but your hubby does not have to have the same idea or wants when it comes to that.
My mum always saved money for us which I then used to help fund a deposit for my first house and also my first car. I never had an accident with my car and used it until we sold it to upgrade to a SUV. For my kids hubby and I are doing the same thing - more to save for their house. It was really difficult for us to save for our house due to the area we wanted to live in so had to save about $200k for just the deposit and stamp duty. I just wonder how times will be for our kids and if we can save like $20k or $30k for each of them just to help out when they buy a house, I think it would be really appreciated.
I really think kids learn the value of money through their everyday life. So if he is worried they are going to be unappreciative, I think it really boils down to how you spoil them or teach them the value of money with those regular smaller purchases.
Saving is never a bad idea. You could use it for a big 16th 18th or 21st, car, university support, contribution to home loan.
I'm kind of with him in this, if they know there's a Lump sum coming they may take it for granted, they will probably need to work and earn before they learn the value of it. But it is also nice to be able to help them to get further than we did. You just have to agree together on how much and what you will spend it on.
We’ve been putting money aside for our son ($10 a week) so by the time he is 18 he will have about $9500. We will also try and give him a house deposit and pay for his wedding, one set of grandparents are leaving everything to him and his cousins so he will get approx $200k which we will hold onto (pending they pass before he is 18) until he is ready to have that wealth. There’s also a house being left to him from the other set of grandparents.
I was a spoilt thing, brand new car for 18th, always got whatever we wanted however when it came crunch time we had to work our butts off for a house deposit :) I really appreciate the value of money now with bills, rates etc. but I will never know “poor” or struggling so to speak as if I ever found myself in money troubles I could get assistance. I think if you can do it for them, do so :)
My mum always had accounts for us as kids that she tried to build up. Unfortunately she was a single mother to three young kids and often had to use it to get by. That being said, she brought my first car with $2000 and she has also brought my brothers their first car or put $2000 towards them and they’ve added the rest of they wanted something more expensive.
I absolutely loved my first car even though it was a shit box. I looked after it and was so sad to see it go. And I was thankful and grateful that my mum saved up for it for me, because I was well aware how much she struggled our whole lives. She brought it for me when I was booked in and ready to get my P’s as I wanted to do some lessons in it with my L’s because she only had auto and I was going my manual (as was my first car).
We’ve got savings accounts for our children and all I do is collect our coins and divide it between the accounts when I add it in. Around tax time, Christmas and their birthdays I try and add some more.
We don’t know exactly how we will give it to them, and if it’s when they turn 18 or 21. I think it will depend on their maturity levels, and I think I’d much rather put it towards something (such as their first car) rather then handing over money. If they plan on going to Uni, I would probably hold off until then.
With regards to a car, they will get an old one to do up with hubby so they learn basic mechanics. But we will either go halves or pay if school work prevents them from having a casual job. When they want to buy a house we will consider whether we help with a deposit etc then... Taking into account whether they're in volatile relationships and likely to lose it or not etc. If they are we will try help another way... But I agree with your hubby. It's needs to be earned to be appreciated so not available on a silver platter and not something they know about in advance
OP here. Thanks everyone for the comments, we were just talking about how easy some Americans had it with a Collage Fund ready for them. I agree with learning the value of money but I would still like to save a little up to help out with a first car for them ( for when they could afford it) but they would never know it was available to them. They would have to work for their money with a job and be able to afford all the expenses before we helped them out with some money for a car.
I see this from both yours and your husbands perspectives.
On one hand, I moved out at 16.
No job, no money (My dollarmites account had been cleared out by my father), no stable home. I had it rough for a while, and I resented my parents for it I'm not gonna lie...
I would do anything so my kids don't have to struggle like I did.
On the other hand, my step sister has lived a very privileged life. My step mother and Father (Yep, same guy who took the very little savings I had) paid for her to go to good schools, a good college, paid the rent on her apartment while she was at college, bought her a car... I could go on and on but my point - I don't even envy her. She hasn't adapted to adulthood at all, she has been so sheltered and never had to figure out how to get through adversity I feel she's been done a real disservice!
I don't think there's any harm in giving your kids a kick start, that doesn't necessarily mean it has to be in a monetary way either.
My kids can live with me for as long as they need to and they'll always be fed in my home (I don't care if they're 40 lol), I will probably contribute to their first car but that's probably as far as it'll go. I want them to work hard and feel that sense of accomplishment once they reach their goals!
I could be wrong but I think in America they need the college trust fund because it's paid upfront whereas Australia has hecs debt available.
My parents supported us with the basics financially while we were studying as they were farmers so we had to move to the city for uni and didn't qualify for Centrelink, which I will be forever grateful that they were in a position to do so. We have also each received 10,000 when we got engaged
For my husband and I, we have decided to invest money for our kids so they'll receive a share portfolio each
I don’t know how stocks and all that work, so I save money instead.
So far, each fortnight my sons account gets $25.
He has a junior savers account, and I use his account through the year if I’m short on cash, I’ll use it for a bday present, an Xmas present, or immediate school things (excursions etc) but I only use it if I’m flat broke.
I’m a single mum, I barely make ends meet, but I save money in both our accounts before bills are paid. Otherwise, he’ll struggle the same way I have. I want more for him, I see people my age who have had help and haven’t had to struggle and they make life look easy and fun. I want that for my son. I will use his account to keep covering expenses as they come up, but I estimate by the time he’s 18 there will be $3000 in his account. Thats enough to buy a crappy car OR put a rental deposit down if he needs to move for uni.
If you can afford a little bit, why not make the struggle less?
Our kids incur a debt for uni, which at times, could be huge before they even think about applying for a car or home loan. The threshold has been lowered, so they’ll have to start repaying their HELP debt much sooner than previously. Also, “back in my day” uni was free so it’s not a level playing field.
I’m a single Mum on a pension, my daughter is at uni, it’s a struggle on Centrelink youth allowance for her, living away from home, text books, not being able to find reliable part time work due to class schedules, work placement etc
Help your kids if you can, so long as you’re not raising entitled brats 😊
I put $40 away every pay into an ING account for my daughter. She will only be able to have it when she can afford a mortgage for it to help toward her deposit. With the cost of living and lack of jobs these days by the time they are grown they'll need all the help they can get.
I have put $50 a month away each child since they were born.
I recently upped it to $100
My dad bought my 1st car as a do up together project...it went beyond me getting my licence, he found something else and this was my getting a licence prezzy.
My brother got the other car (4 years younger)
He also helped me at 21 years old get a loan for a business, I sold that business at a profit and this was the deposit for our house.
I admit I was one very lucky kid, Although I helped out no questions asked.
20 years on hubby and I run a successful business.
Hopefully we can give our kids the leg up that I had, it really did shape our life.
If you are in a comfortable enough position that you will be able to pay the huge out of pocket fees for your child to attend uni without needed to save then don’t worry about it. We put $50 aside each fortnight so that when our son turns 18 he some options available to him.