Money Moral Dilemma: Should we buy Premium Bonds for the children in our families this Christmas?

Super_Stomper

Just ask the parents. My great nephew is 13 and his mum will often say " I've bought him this, if you would like to give it to him" (she knows how much I'm willing to pay), or gives me a list of books he would like (he's an avid reader).

primrose_penguin

I am not totally sure but I think the least amount of premium bonds you can buy is now £100, so I would not call that a small gift, unless you are able to divide them out amongst the children, I don't know how it works. What about a book voucher so they can go and choose their own books there are some super stories today for all ages, and nice to think it would cultivate a love of reading. Otherwise a board game which they could have fun playing as a family, or cinema tickets, or something to wear. At least you would know they are things that won't be wasted.

Coveredinbees!!!!

Get the parents to start them a pension and pay some money in to that, they will than you when they are getting near to retirement with 40 - 50 years of compounded returns

squirrel59

Yeah, you need loads of premium bonds to ever win anything, so how about some money in a savings account AND a pressie? They can learn to play with their savings account (if it's an online one) AND have a great book to read or something un-tattish like that.

squirrel59

PS Thank you for posting an actual dilemma, by the way! Most 'dilemmas' are anything but.

gloriouslyhappy

Raf_3 said:

Speaking as someone with two kids, I totally get the motivation of wanting to avoid giving toys.

We have shelves heaving with plastic tat and unplayed board games and the last thing they really need is any more.

If someone were asking about gifts for my two, I would ask them for something that is used once and then done. Tickets for a day out or a show is nice. Voucher codes for video games are a surefire hit in this house.

Or, to keep it super simple, a book. Something like the Guinness World Records is always great fun.

Agree with this - or open a savings account and pop in what you would have spent, then carry on topping up and  gift it to the children on their 18th or 21st birthdays, and give them a card every Xmas and birthday telling them so. For example, a modest £10 top up twice yearly for ten years would be a nice £200 cash sum, and they have all those years to plan what they'll spend it on.

sheramber

primrose_penguin said:

I am not totally sure but I think the least amount of premium bonds you can buy is now £100, so I would not call that a small gift, unless you are able to divide them out amongst the children, I don't know how it works. What about a book voucher so they can go and choose their own books there are some super stories today for all ages, and nice to think it would cultivate a love of reading. Otherwise a board game which they could have fun playing as a family, or cinema tickets, or something to wear. At least you would know they are things that won't be wasted.

it is now £25.

sheramber

behelpful said:

They might have to wait too long for their premium bond to come up to appreciate it.

I received one at birth, am now past retirement, and have never won.

Is this a record?

Mine were bought 1959 and have won zilch.

Snapdragon

Not their only pressies by any means, but I bought premium bonds every birthday and Christmas for my boys from birth until they were 18. Once they were old enough to understand they had savings, they liked the fact they had the chance of a 'win' and fortunately they did win multiple times over the years.

Whenever they were given cash, they opted for me to add it to the premium bonds, so they got into the savings habit as a result of premium bonds and they had a decent sum when they wanted it later in life. One eventually cashed his in, putting it towards a 6 month trip to New Zealand in his early twenties, the other used his towards furnishings for his first home. 

I must admit by the time I had a grandchild, I looked at the premium bond idea again and decided if I had invested the same sort of sums, the boys would have had considerably more when they were grown up and ready to use the proceeds. So I opted for the ISA route for my grandson. I say ISA rather than JISA, since a JISA has to be set up and controlled by the parents, which doesn't always work out the way you intended!  I therefore invest in a different fund for my Grandson within my own ISA, so I will be able to gift him a decent chunk of money later in life when I think he needs it, rather than adding to the house full of toys he already has and grows out of within weeks.

For small amounts I still think premium bonds are a decent route, although I do accept the rate of return nowadays is poorer. A few months after Christmas, the recipients won't have a clue who bought which toy or latest 'must have' that they've already broken or gotten bored with. The premium bonds however will get the child into the saving habit once they are old enough to understand them and the potential 'win' element is a bit more exciting than a savings account.

meknowalot-51

How old are they?Do they have savings accounts?Ask the parents?