How much board should I be paying?

Lunar_Eclipse

Mojisola wrote: »

If he does, he won't have much incentive to save for himself, will he? "I can spend all my money on stuff I want because Mum and Dad are going to buy a house for me."

Why?

I think statistics say the opposite is more likely: savvy parents usually breed savvy kids. (Linked also to Aspiration Poverty.)

AlexLK

Funky_Bold_Ribena wrote: »

Wouldn't it be better to pay your debts off first and then save for your son? Does he need £12k at age 3?

The debts are being paid off, thank you. I have been rather stupid with money until very recently all my life. However, the current £32k's worth of debt was the "final straw". Last time I found myself in debt, my parents ended up bailing me out; which in truth was perhaps the wrong thing to do as I'm finally facing up to this now my wife and I are facing the consequences.

duchy wrote: »

We all hope our children won't repeat our mistakes. Once your child reaches eighteen they will have full access to the money and you ...like your parents before you....won't have any say in what they do with that money.
Are you not risking history repeating itself ... putting the money into your child's name rather than in yours where you can retain control until your child is mature enough not to blow it....... at eighteen they may be really sensible and already thinking ahead towards a mortgage...or they may be enjoying wine, women and song ...... you just don't know !

The money will not remain in his name indefinitely.

[Deleted User]

duchy wrote: »

Bear in mind the OP is not borrowing £6K a year -a substantial part is a grant so not repayable.

One thing that strikes me is that the student support package is probably too high if students are able to save such substantial amounts in certain circumstances. Perhaps like benefits if people are also working these "benefits" (the grant part not the loan part) should be reduced on a pound for pound basis above a minimal level ?

(and before I'm accused of anti-studentism.... I'm a mature student who also works so my suggestion would directly impact me financially -I'm aware my grant and bursary make studying very attraactive)

I borrow £3600 for my fees a year, £4500 loan and grants a year - about £1600 of that is grant so majority loan. I chose to work part time as my loan/grant wouldn't leave me with much leftover if I lived off this. As I work a lot of hours I'm able to save most of this.

Mojisola

AlexLK wrote: »

He's almost three so does not understand the concept of us saving money for him. It is currently in his name due to obvious tax benefits.

I probably come from a very different background to you, my parents gave me enough money to (more than) buy a nice house when I was 18. I chose to waste it and that created animosity between my parents and I for a long time. However, now I understood why they gave me the amount of money they did and that I just chose to not use it wisely. Unlike my parents, my wife and I have an average income so cannot save as much for our child as they did for me.

Lunar_Eclipse wrote: »

I think statistics say the opposite is more likely: savvy parents usually breed savvy kids. (Linked also to Aspiration Poverty.)

If children follow their parents' lead, I'm not sure saving money in his child's name is the best decision.

AlexLK

Mojisola wrote: »

If children follow their parents' lead, I'm not sure saving money in his child's name is the best decision.

In all honesty, it's rather a different situation as I never imagined that I'd be anything other than a "top earner" when I was younger, I also thought my parents would choose to pass on some of their investments to me once they retired (they didn't). To put it bluntly, I was an arrogant young man.

duchy

Do you intend to tell your son about the investment or do you think if he is unaware of it he's more likely to be more financially responsible ?

I do think that to someone who has a modest amount-to suddenly find they have money can go either way ....either responsible...or dazzled and go a bit nuts.

mumps

duchy wrote: »

Bear in mind the OP is not borrowing £6K a year -a substantial part is a grant so not repayable.

One thing that strikes me is that the student support package is probably too high if students are able to save such substantial amounts in certain circumstances. Perhaps like benefits if people are also working these "benefits" (the grant part not the loan part) should be reduced on a pound for pound basis above a minimal level ?

(and before I'm accused of anti-studentism.... I'm a mature student who also works so my suggestion would directly impact me financially -I'm aware my grant and bursary make studying very attraactive)

Sorry, where does she say a substantial part is a grant? I have tried looking back but can't see that. Perhaps I missed it.

[Deleted User]

Lunar_Eclipse wrote: »

Why?

I think statistics say the opposite is more likely: savvy parents usually breed savvy kids. (Linked also to Aspiration Poverty.)

My Mum was in thousands of pounds debt many years ago which my Dad stupidly put in his name for her and he has just finished paying off recently. I'm trying not to follow that example.

duchy

amberstar wrote: »

My Mum was in thousands of pounds debt many years ago which my Dad stupidly put in his name for her and he has just finished paying off recently. I'm trying not to follow that example.

I guess if they weren't married it was stupid....... if they were then it was a decision your Dad made at the time as an adult ..... but regrets now they aren't together ?

[Deleted User]

duchy wrote: »

I guess if they weren't married it was stupid....... if they were then it was a decision your Dad made at the time as an adult ..... but regrets now they aren't together ?

No they weren't married. It doesn't really have any relevance to my current situation just thought I'd respond to the previous poster.