Giving money to grandchildren at what age?

kuepper

I'm thinking of giving money to my grandchildren, possibly a five figure sum. I'm a bit worried as I received a decent amount of money when i was 18 and had spent it all on LPs over a year or 2. Every 'kids' account  I look at seems they'd have sole control over any money at 16/18 so I'm worried about any gift being used for relatively frivolous purposes like I did and also being vulnerable to pressure from peers who discover they have this money etc. Is it better to give money to my children and trust them to pass it on to the grandchildren at an appropriate age (21?)or for 'sensible' purposes only ( eg wedding, driving lessons, car purchase, house deposit etc) or alternatively keep the money and will it to the grandchildren (with the option of giving it earlier if I'm still alive)?

Flugelhorn

really hard with kids to know what they will be like - in-laws gave all 4 grandchildren a significant sum on starting Uni - 2 out of four spent it rapidly - the other 2 have finished uni and still have the money in savings accounts - what you don't know is what each on will do 

You could always buy them premium bonds they may be less likely to cash them in when they have access to them at 18?

talexuser

I had the same problem and after family discussions decided the best route to avoid waste was topping up Mum's ISA allowance which she wasn't using very much every year with a world tracker. She can then decide about university/driving lessons/first car etc etc. when the time comes.

MikeJXE

I gave my 4 grandkids £9,000 last Christmas  and followed it up with another £1,000 at their birthday

It was put in a junior isa and they can't touch it till they are 18

I also had thought on what they would spend it on and decided that was their choice to make. 

Whatever they do with it the look on their faces payed for their privilege to spend it as they wish 

diystarter7

Hi OP

We had grandkids late into our age,
Ideally, IMHO, 21 is better than 18. Ask any 18 year old, they will know it all but as we know they lack life skills
and often more easily led by others and their minds.

Good luck.