Use children's savings as part of deposit?

wannahouse

where did the money come from in the first place?
its not as though they earned it!
all the money in our kids piggy banks has been swiped on sight and put in their bank by the kids from our pockets!
can't leave penny lying around!


i don't see any problem with it at all...
back in the day, they would have been working up a chimney etc, by that ages and handing the whole lot over to you for food!

sammyjammy

If you needed it to feed your children I would say do it but for a house deposit, no. You say your friend went to the "bad" school, but presumably that would have been years ago. Your children are 3/4 years away from needing to go to a different school how do you know the system won't change again in that time?

What if your circumstances change and you find you can't pay the money back? Are you going to sell your house in 10 years time to return the money?

J_i_m

Forget the legal and moral arguments.

The moment the money was gifted to the children it became theirs, even of they don't have access to it yet, it is still theirs.

Basically it isn't your money to be doing anything what so ever with, whether you think it's in their best interests or not.

Some years down the line it might be their university fees, or a deposit on a house of their own.

dotdash79

Interestingly enough when I was about 7 my mum and dad asked to borrow my savings to help my dad buy a new taxi so he could earn. It was only about £500 (back in 1987), they said how they were going to pay me back and did so.

The thing I always remembered is that they asked me rather than taking it. 7 year olds are smarter than most parents think.

DaftyDuck

I'd use it - with no qualms at all.

1) As an investment product, a house is as good as a deposit account

2) Not only do the children gain their "interest", they gain a more pleasant environment in which to live

3) Assuming they inherit your assets on your death, the difference between the interest you'd pay for ~ 10 years, and the interest they'd gain in the same period would be substantial. In other words, their total assets will greatly be enhanced by doing this.

4) The main reason you have listed is to further their education. The move is beneficial to them in this respect.

So their assets are not only earning more interest that in the bank (probably{?!?}), and gaining them a better home life, and adding to their heritable assets in the long run, they are also adding educational benefit throughout their childhood. Win Win Win Win.

You do need to plan how you will be able to pay the money back, and ensure it is paid back, which it sounds like you've clearly recognised. You most obviously have their interests at heart.

Yep, it's an absolute must from me. It's also what my parents did, when my sis won £1000 on the Premium Bonds back in the late 1960's.

InMyDreams

J_i_m wrote: »

Forget the legal and moral arguments.

The moment the money was gifted to the children it became theirs, even of they don't have access to it yet, it is still theirs.

Basically it isn't your money to be doing anything what so ever with, whether you think it's in their best interests or not.

Some years down the line it might be their university fees, or a deposit on a house of their own.

But that *is* a moral argument.

My 'moral' take is this: As a parent we impose risks on our children daily. Only yesterday I strapped my youngest into a car so that *I* could get to a medical appointment that was nothing to do with her. (Except indirectly, I suppose... it's obviously in my children's interests that I look after my health.)

So yes, you would be risking your children's money. There is a very real risk that you will never be able to pay them back. Only you can gauge that risk and decide whether or not it merits the benefits to your children both now and in the future. Could you, in years to come, justify that risk to them if it all goes pear-shaped.

I don't have a legal take because I'm not a lawyer. I've no idea.

Tenyearstogo

We used our children's savings towards our deposit. All bar £100 was money that we had saved for them though.

We have paid that money back since borrowing it. We won't be allowing the children access until they are 18 anyway.

Because of borrowing this money, we have been able to live a better quality of life, in a better house, a bigger house in a nicer area with a bigger garden.

I don't regret it, I have not stolen from my children. I borrowed. I lend them money when they need it and I would be prepared to lend them the money for a deposit on a car or house. Families should help each other out when they can.

christopher1977

I would suggest if your only means of raising a deposit is to raid the kids savings account you probably can't afford it.

Smi1er

We've done it in the past. To the tune of about £8K. We did however have a very clear plan of paying it back, in what timescale, and what additional payment we would make to cover the lost interest. And we kept to it.

Soot2006

I think if you explain it to the children in terms they can understand, and have a clear repayment plan (with interest - children are not stupid! ), then morally, it's OK.