How can I help My Mother !

barnaby-bear

DazzaE wrote:

Hello everyone,

Been a while.... OK ill get down to business. If you don't already know in a post I did a while back I explained my family came into a bit of money. 100,000 to be pricise. Now i don't think my mother has a dame clue what to do and is going of help from "banks and building society's". I think there trying to make here save the lot and use the interest monthly.

Dunno if this is the right place like for this topic, didnt know where to put it but i know my mum has debt's i.e. house to pay off, car to pay off, overdrath and so so bills but it seems to me she is taking all the advise of the "banks" etc and not listening to me what so eva.

Any one have any idea's on what she should actually do with the money and how i can explain it to her.

p.s

I know she wishes to help me out (am 2,000 overdrawn as a student and also have had my student loan already) by giving me 5000 but puttin it into a high interest account and giving me none now. She is also doing this for the other two kids as well.

Sum 1 give me sum advise !

Daz

Your mother can give you £3k a year each tax free, beware of large gifts that may bring tax men to your door, she can also give lump sums tax free on marriage as a gift (was £5k) and to kiddies. Of course she can draw £1k out and 'spend' it on clothes but lump sum transfers of £5k best done over two tax years and not by electronic transfer. As a studnet make sure your saivngs all tax exempt.

dancingfairy

She really needs to pay off the debts first as they will be charging a huge interest rate and eating up any gains she would make on saving. Can you show her the debts in the future and show her how much she would end up paying in interest- do a sort of spreadsheet or something, or even just do a simple one showing £100 debt over 5 years say and £100 in the bank.

Also make sure she doesn't get tied into anything and make sure she can understand what the bank are selling her and why- if she can't understand it she shouldn't do it. Also if she insists on getting an ISA/ current accoutn/savings account/ etc - get her to shop around and show her that her bank may not offer her the best deal - hopefully then she'll see what you are trying to explain to her.

Good Luck.

P.S with that sort of inheritance she would probably benefit from going to and independent financial advisor (IFA) who would explain that she needs to clear her debts first.

dancingfairy

She seems to have the right idea with the savings thing for you and your family though - it's a good start.