We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Deposit, but also using my child's savings
Shoey1610
Posts: 494 Forumite
Bear with me on this one, I just hope it makes sense.
My husband and I are now at the stage where we would like to become first time buyers. Our incomes mean we would be able to easily cover a mortgage for the size of house we would like and additional costs, plus all our outgoings and continue to save.
We have started a Save to Buy with Nationwide and will have enough for a healthy deposit and associated buying costs within 18 months.
However, since my daughter was born we have been investing and saving for her and (under our names) she now has £9,000. I wondering if it would be a better choice to use that money towards a deposit thus buying sooner and still continuing to save for her as normal for another 12 years when she reaches 18.
I'm having difficulty getting my head around using the money as it has always been hers in my eyes, but on the other hand, moving away from the instability of renting and having our own home feels like an important thing to give her too, now that I am finally ready to settle in an area we love and where she goes to school.
What would you do?
My husband and I are now at the stage where we would like to become first time buyers. Our incomes mean we would be able to easily cover a mortgage for the size of house we would like and additional costs, plus all our outgoings and continue to save.
We have started a Save to Buy with Nationwide and will have enough for a healthy deposit and associated buying costs within 18 months.
However, since my daughter was born we have been investing and saving for her and (under our names) she now has £9,000. I wondering if it would be a better choice to use that money towards a deposit thus buying sooner and still continuing to save for her as normal for another 12 years when she reaches 18.
I'm having difficulty getting my head around using the money as it has always been hers in my eyes, but on the other hand, moving away from the instability of renting and having our own home feels like an important thing to give her too, now that I am finally ready to settle in an area we love and where she goes to school.
What would you do?
0
Comments
-
What is the savings for exactly? Uni fees? Buy her a home?
Personally I would use it if it's going to benefit the whole family. As you say you can still save up for however many years after you've bought. You never know what's around the corner and if you're in the position to buy then I would go for it!0 -
Tough one!
Will you be saving money on the mortgage over what the rent will be? You could always put the difference in savings on top of what you were already putting in?
On the other hand... what she doesnt know :PI am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
We never really thought about it being for a particular reason, just vaguely 'for when she is grown up' and it has just accumulated from there. I suppose that buying her own home might be a good one, but that could be over 20 years away and we might be in a position to help her out then anyway for all I know.
We won't be saving money on what we rent now, but even if we just saved £100 a month (less than we do now) afterwards she would still have at least £15000 when she turned 18.
As she will be our only child, I'd like for us to have a house paid off so if we manage to get very old and need care, the money is there and it takes some of the burden off her. If we died before that, would the house go to her? Obviously if we had managed to pay it off.0 -
Circumstances change. Who knows what your situation will be when she is 18. Spend the money on providing a decent home now. She will thank you inthe long run!0
-
If any of the money had come from other people (eg family or friends), or if it been invested in her name, I'd say you shouldn't use it.
As it is, all you've really done is saved money in your own names, and mentally marked it "daughter's money". If you change the mental label to "providing for daughter", all is well.0 -
I would definitely use the savings on a deposit and get onto the property ladder, you seem like a very good ahead planner, so you will have saved back your daughters savings in no time.
Go for it!0 -
Considering its your money, why is this a problem at all.
If it makes you feel better, write an IOU.
My parents never saved for me, and I'm not saving for mine, they will get your house eventually anyway!Target Savings by end 2009: 20,000
current savings: 20,500 (target hit yippee!)
Debts: 8000 (student loan so doesnt count)
new target savings by Feb 2010: 30,0000 -
Circumstances change. Who knows what your situation will be when she is 18. Spend the money on providing a decent home now. She will thank you inthe long run!
This is my thought, too.
Property is decent security for kids, as I know that when we're gone, theres a £750k property in the UK, and two second properties in our home country (one worth about US$1m, so about £600k, and the other worth about US$200k, so about £120k), all of which are paid for, one of which was given to me by my parents, and the other by OH's parents.
Anything above that (cash, shares, our businesses etc) then become theirs as something above that security, although I'm probably too young to be thinking about this now!
CK💙💛 💔0 -
CKhalvashi wrote: »
Property is decent security for kids, as I know that when we're gone, theres a £750k property in the UK, and two second properties in our home country (one worth about US$1m, so about £600k, and the other worth about US$200k, so about £120k), all of which are paid for, one of which was given to me by my parents, and the other by OH's parents
War, revolution, appropriation by the state.You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'0 -
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards