Bit of background - we Bank $10 per week per child and have done so since they were born. This money will be gifted to them on their 18th or 21st birthday to help give them that start in life.
We are trying to save for a house deposit. Between raising 4 young kids, paying high rental prices and everyday living, we just haven't saved as much as we need.
My question is has anyone used their children's savings towards their house deposit? Their savings is linked to my account and they have a substantial amount in there. I just feel bad about using it even though it's our money.
We are currently looking at other ways to help reduce our weekly expenses but saving another $10K feels a long way off.
Thanks for any advice and tips. Would you use it?
12 Replies
We started banking money for our kids when they were born (only 2 and 6 months now). We've now decided we are going to close those accounts and buy $2000 worth of shares for each child and each birthday invest a bit more as well as dividends reinvesting so it will slowly grow. We made this decision 1. Once they turned 12 they technically can access their bank accounts and would have banking fees 2. We feel it's more beneficial to hand over a share portfolio rather than a lump sum of cash 3. Hopefully getting a start in the share market will encourage them to continue to invest their money 4. It works out to be less than what were planning to put into their bank account every year
Sounds great, but not sure how this helps this mother with her current dilemma?
Hey not being rude but I don't think you read the question properly?
I think she saying that shares or a house investment could show more profit than the savings account would anyway
I don't think a novice should be putting such a small amount in the stock market, are you going to put the entire balance into 1 stock? You should look at things like investment bonds, indexed managed funds etc. just my opinion.
It's not really the kids savings, because you are the ones that have saved that money. If the kids had saved that money themselves (with there own money, that is different).
It's not the kids money at all. It's the families money and if you think owning a home would benefit the family, what's the problem??
I would have no problems using that money for a house deposit.
I woulduse it. Yeah im disappointed I dont have savings for my child but I see being financial now as more important, nothings guaranteed you dont know where youll be when theyre 21
In all honesty I had no savings from my parents when I left home and I was fine. I got a job to make money.
It is actually your money and you're using it for a house it's not like it's a silly reason, it's actually beneficial to the kids as well.
I see this from both sides. If the kids don't know it's there, all well and good, take it and use it to build a future. They'll benefit from it anyway. If they do know it's there I'd actually ask if it was ok. You see, my grandparents used to put money into accounts for us kids, we knew it was there and should have been a small but not unsubstantial amount, and it would have come in very handy when I bought my first car, started my own family or saved for a home loan. Except it wasn't there anymore and there was nothing to show for it. To say I was bitterly disappointed is an understatement.
I'm sure it was disappointing, but maybe your grandparents found themseles in some finacial trouble and there was no choice. I'm sure it devistated them to use it. Try not to be bitter. Xx
I myself inhetited $90,000 from my grandparents and out of that money i was going to put $10,000 into a bank account for my daughter so that she would have a start in life when she is older (she is 2) but we ended up using it as a house deposit, bought a car, a holiday and a few other things and now i dont have much of that money left anymore which means i wont have that $10,000 for her now but i think that by us buying a house etc it will most likely benefit all of us in the long run..i think if you really need it to be able to afford a house deposit then go for it.. its not like you are waisting it on silly things and this could actually benefit your children more now and later in life.
A house will be a family asset! I think it will benefit the whole family having your own home. I think jts a good idea! You better off paying off your own morgage than someone else's :)