My child is nearly 18 - do I hand over all the savings for college? or should I manage the accounts?

Pitchperfect

Any advice on what to do with the money I saved to get my child to college?  Should I just put it all into one account for them or should I hold onto some?  What did you do?

wmb194

Pitchperfect said:

Any advice on what to do with the money I saved to get my child to college?  Should I just put it all into one account for them or should I hold onto some?  What did you do?

Does it already beneficially belong to them i.e. it's already legally theirs and at the moment you're just acting as a trustee? If so, you need to hand it over.

If it's just earmarked for them but has been saved in your own accounts then I'd drip feed it to them.

summer_daze009

Would you really trust a teenage student with a lump sum? 

As previously mentioned if it is your money but just earmarked for them I personally would just transfer to them as and when

eskbanker

Pitchperfect said:

Any advice on what to do with the money I saved to get my child to college?  Should I just put it all into one account for them or should I hold onto some?  What did you do?

Assuming it's still your money rather than theirs at this stage, then only you know how mature and responsible they are and what their likely reaction is to receiving a windfall.  If the money is earmarked to get them to college, e.g. tuition fees, etc, rather than living costs once there, then you could retain the money and pay the bills directly - not saying this is appropriate but is the other end of the scale from handing it all over and risking it being used for other purposes from what you had in mind....

Swipe

summer_daze009 said:

Would you really trust a teenage student with a lump sum? 

That really depends on the child. I had a few thousands in inheritance from a great aunt at 19 years old and I didn't blow it all on rubbish.

LHW99

If it is all in their name, time for a careful discussion on money management IMO

artyboy

Given how utterly hopeless I was with money at 18, I count myself extremely lucky that my 2 cherubs seem far more interested in working to accumulate more wealth on top of what has already come / will be coming to them; rather than going and spending frivolously.

MDMD

Swipe said:

summer_daze009 said:

Would you really trust a teenage student with a lump sum? 

That really depends on the child. I had a few thousands in inheritance from a great aunt at 19 years old and I didn't blow it all on rubbish.

Indeed. I had some money my grandmother was “saving” for me in her name. She kept making a big deal about it but when she died when I was 16 it turned out she had spent the lot….

Sea_Shell

MDMD said:

Swipe said:

summer_daze009 said:

Would you really trust a teenage student with a lump sum? 

That really depends on the child. I had a few thousands in inheritance from a great aunt at 19 years old and I didn't blow it all on rubbish.

Indeed. I had some money my grandmother was “saving” for me in her name. She kept making a big deal about it but when she died when I was 16 it turned out she had spent the lot….

Ouch!

That's a harsh life lesson to learn at 16. ☹️

london21

Really depends how mature and financially responsible the child is.

Myself from a young age I have been good with money but one size does not fit all.

You can guide and advice the 18 years old so they do not make wrong choices and decisions.

Then again you can guide but they ultimately will have the choice. 

comeandgo

When our children started uni and left home, one was 17, one 18, they got the full amount that was saved in their names and were told that’s it, luckily they were both very sensible and the money lasted the years it was earmarked for.  They also got the odd £20 and grocery delivery over the years from family.