11 year old son has inherited a lot of money

Spendless

hardtime said:

My 16 year old nephew inherited £35,000 last year and it was a huge relief for him. He had hoped to go to Uni to study physiotherapy but knew he couldn't afford it and that when he finished his college course he'd have to get a job. Now he is thrilled that he can aim for that Uni course instead. If he didn't know about the inheritance he might not have tried so hard to get in. My daughter turned 18 last week so inherited her £35,000 which she doesn't want to touch as she wants to keep saving it for a deposit for a house. My elder daughter is using hers to explore the world.  Just because they are young adults doesn't mean they will blow it on rubbish.  Give them guidance.

Why did your nephew think he couldn't afford Uni?  It's worth anyone having a read of the articles on this site about student debt to understand how it works and whether it's worth spending any savings in this way.  

TripleH

Hardtime those sound all very sensible options fromthose children.

I suspect the nephew saw the headlines and worried about them without foing in depth research (which is understandable).

I'd tell your son, explain to him his options, give him time to mull over.

I had a different sense of money to my siblings and was more debt adverse when younger before 13), not everyone is the same.

It might make sense to educate on budgeting now, and bring him more into how the family finances are organised.

Primrose

Yes, it's a mixed blessing and a worry for you.

I think your priority over the next few years until  your son is around 15 is to ensure he has a good understanding of financial discipline, budgeting and how to assess financial priorities.    An early understanding of a large inheritance could well destroy any incentive to sensibly plan his future education and career.    If he,s well grounded by then, you can then consider talking to him about how to move forward with this larger sum.

True story.  A relative in my wider family circle had a son who won almost £1 million in the lottery in his early twenties.  He blew the lot in the space of about 12 years on an unwise marriage, big house, expensive cars, foreign holidays and friends who only wanted him for his money.  He immediately gave up his job and soon had no moral incentive left in his life.  He's now divorced, has spent all his money, the bank is about to repossess his house to recover his debts  and he has a severe alcohol problem.    Truly having too much money can be as big a dilemma as having too little if you don,t responsibly know how to handle it

Ensure  your son is financially well grounded and has a sense of real purpose  for his life before he knows what's waiting in the bank for him.  Until then let his trustees handle his money!  Whoever bequeathed it worked hard over their lifetime to accumulate it. Don,t let their memory be insulted by the risk of it being frittered away,

Also if you have other children, ponder carefully how this will affect their lives going forward because this inheritance for your  son could well prove to be a poisoned chalice for family relations as the other children reach maturity and struggle to make their way in adult life.