Lost £12k of savings

charmah

Hi MSE

I really need some advice with some people who have a clear head. A savings account set up for me by my parents had £12k in it. It was savings for uni expenses, but now my parents want to transfer it to a main savings account to increase interest... Only problem is, I was sick of seeing my parents struggle with money and desperately build up savings. I attempted to use the £12000 to invest and make a large return to try and help my family. What was going through my mind - I don't know. I barely earn minimum wage from my job, and it doesn't do much to supplement the family income. Now, I've managed to put a huge dent in it thanks to my complete idiocy. I need to come clean to them but I do not want to hurt them.

Barny1979

Magic Beans?

charmah

@Barny1979 I'm not looking for a magic solution, I just want advice on the best way to come clean to them because I've put myself and my family in a terrible situation

LilElvis

How much of the money have you lost? How did you invest the money you withdrew and is any of it recoverable?

DUTR

charmah wrote: »

@Barny1979 I'm not looking for a magic solution, I just want advice on the best way to come clean to them because I've put myself and my family in a terrible situation

Not sure you have applied the post to the correct forum...
Basically there isn't a best way,
The amount you are on about will make little difference to their savings account.
If they have donated monies to you, they shouldn't really be asking for it back.
You need to get sensible with money, quick buck investments rarely work.

charmah

@LilElvis there is about £200 left, I invested in Forex but I wasn't the best at it clearly..

John-K_3

charmah wrote: »

@LilElvis there is about £200 left, I invested in Forex but I wasn't the best at it clearly..

What possibly possessed you to believe that you could predict the direction of movement of the most efficient market in the world, and how leveraged were you that you lost it?

Anyway, to answer your question, you need to tell them that you took the money that they worked so hard for, money that was to buy you a better future, and that you gambled it away.

Then you say that you are sorry.

And then, if you want to be an adult, you take on a second job, you work evenings and nights and you earn enough to pay them back. £8 an hour is 1,500 hours. At 30hours a week (easily manageable if your first job is 37 hours) you will be there in about a year.

Spendless

So, the money was a gift to you but in an ideal world it was to help with Uni expenses? But you've started work instead and don't intend going to Uni?

I'd just apologise and explain you wanted to make additional money, but have got your fingers burned and have lost it. Recognise that to put it in a higher interest savings account, like they're suggesting would have been a lot safer idea.

They'll likely be upset and possibly angry.

As a parent I'd like to think my two will do 'sensible' things with the money I've saved for them, but once they are an adult I can't control it.

pinkshoes

How old are you???

I would suggest taking as many jobs as you can get to start building the money back up, and tell them you do not want to go to uni for a few years.

Or just tell them what an idiot you have been.

Pollycat

charmah wrote: »

Hi MSE

I really need some advice with some people who have a clear head. A savings account set up for me by my parents had £12k in it. It was savings for uni expenses, but now my parents want to transfer it to a main savings account to increase interest... Only problem is, I was sick of seeing my parents struggle with money and desperately build up savings. I attempted to use the £12000 to invest and make a large return to try and help my family. What was going through my mind - I don't know. I barely earn minimum wage from my job, and it doesn't do much to supplement the family income. Now, I've managed to put a huge dent in it thanks to my complete idiocy. I need to come clean to them but I do not want to hurt them.

Can you explain what happened to the £12k.
Because I don't know.

John-K_3

Pollycat wrote: »

Can you explain what happened to the £12k.
Because I don't know.

I really can’t understand how even a relatively bold strategy can generate a -98% return.

You have to wonder if it was gambling on binary options, as it really retakes some effort to drop that much on mainstream currencies otherwise.