Money Moral Dilemma: Is it OK to pay off our mortgage with our son's winnings?

Pollycat

Alexh747 wrote: »

Not sure I understand this, surely as the parent it’s my responsibility to spend/invest the money for the benefit of the child?

How would you do it?

I'm not sure what you don't understand.
As the parent it's not your responsibility to take money specifically invested by the child's grandparents and spend it in a way that suits you.
Have you discussed this proposed use of the money gifted by the child's grandparents with them?

Alexh747

marliepanda wrote: »

Where is the nest egg going to come from? Youre going to remortgage once he hits 18? What if your finances don't support that?

18 year old you doesnt get to make decisions about your childs money. Maybe he will get to 18 and think 'Im not bothered about all those holidays I cant really remember, I wish I could buy my own house or go to Uni comfortably... or buy a fast car.'

At the end of the day its not you money. Ask granny and grandad for some premium bonds if you want to have a shot at it as well, or better yet, buy your own.

This is all hypothetical, I’m genuinely interested in how to improve the life of my child. Nothing else.

Nest egg comes from £1M win (not going to happen, I know.) pay off mortgage ~£250k. Leave £750k + growth as nest egg, and eventually the house too (no guarantees I realise) plus a great family life in the meantime.

How do you value a better childhood? As I say, personally, I’d happily have taken the above scenario if I’d have been lucky enough to have the choice.

Alexh747

Pollycat wrote: »

I'm not sure what you don't understand.
As the parent it's not your responsibility to take money specifically invested by the child's grandparents and spend it in a way that suits you.
Have you discussed this proposed use of the money gifted by the child's grandparents with them?

I’m NOT “taking about taking the money invested by the child’s grandparents and using it in a way that suits me” - I’m taking about using the (unlikely) winnings to improve the life of the child.

What’s almost certainly going to happen is he gets to 18 and has about £1025 to spend which will certainly be his to spend as he wishes - I’m certainly not going to touch it!

Pollycat

Alexh747 wrote: »

I’m NOT “taking about taking the money invested by the child’s grandparents and using it in a way that suits me” - I’m taking about using the (unlikely) winnings to improve the life of the child.

What’s almost certainly going to happen is he gets to 18 and has about £1025 to spend which will certainly be his to spend as he wishes - I’m certainly not going to touch it!

Then why don't you put any thoughts of your child's premium bonds winning big out of your head (I'm sure as a new parent you have more important things to think/worry about) and deal with the (happy) issue if it ever happens.

primrose_penguin

I wonder what his grandparents would think if they knew what you had asked, not a lot I would say. These premium bonds were given to him not you, so if in the unlikely event he should win, the money can be invested for his future. If you are unable to provide for your child perhaps you should have waited before having one. Just be the best parent you can be, money does not make any difference to giving him the love and happy childhood he needs, teach him respect and the value of life NOT money, greed is not a very attractive attribute.

Both_Feet_on_Terra_Firma

No its not your money imagine rolls reversed if he was your power of attorney would that be ok to take your winnings and pay off his motgage ?

Flobberchops

Alexh747 wrote: »

Paying off the mortgage would also allow us to not to have to work all the hours God sends to support the family. We could reduce our working hours, go part time etc etc and spend much more time together as a family. Combined with the overall reduced stress of life I think this would be of great benefit to our son.

I can imagine the conversation now:



"Son, remember when you were about five, how I quit my job and from that point on you saw a lot more of me sitting around the house watching TV? And the new car? And the holidays we went on, you were a bit young but I'm sure you have some memories of those? Well, funny story, we were able to do all of that because some Premium Bonds your grandparents bought you won the jackpot and as a family we decided it would be better to enjoy it straight away, rather than hoarding it away for years and years. And there's even some of it left, there's a bit over ten grand there that we haven't touched, plus another seven grand whenever Uncle Derek gets round to paying me back for that car I helped him buy. I mean, technically you would be a millionaire now, but aren't you glad you had such a rich and carefree childhood? And one day, when I'm dead, you'll inherit the house and the car and my collection of Rolexes, so it was more like a loan than me stealing your money, in fact it was an investment you see... wait, why are you brandishing that knife... I meant when I die of old age... aaaargh!"

culpepper

I think it is not okay.
People who put aside any investment for a grandchild are doing it for that child and their future and not for that child's parents.
If you were to pay off your mortgage with the winnings, would you then put your mortgage payments into a savings account for him in the place of the winnings you had taken? I am guessing you would not and would assume that the house you own in your old age would be all he would inherit, while if you left his winnings intact, he would recieve them when he is old enough and can use them to build his own life.

Pollycat

culpepper wrote: »

I think it is not okay.
People who put aside any investment for a grandchild are doing it for that child and their future and not for that child's parents.
If you were to pay off your mortgage with the winnings, would you then put your mortgage payments into a savings account for him in the place of the winnings you had taken? I am guessing you would not and would assume that the house you own in your old age would be all he would inherit, while if you left his winnings intact, he would recieve them when he is old enough and can use them to build his own life.

What I find really gob-smacking is that this is all pie-in-the-sky, dreaming, wouldn't-it-be-lovely type thinking.
There are no winnings for the OP to spend as they wish.

Ebenezer_Screwj

You don't seem to understand the concept of ownership. Let me put it simply - these premium bonds belong to your son - if his numbers come up and he wins a prize - IT IS HIS MONEY !