Money Moral Dilemma: Our child won a Premium Bonds prize - should they share it with their sibling?

MSE_Laura_F

This week's MoneySaver who wants advice asks...

We've bought Premium Bonds in the names of both our children as a way of saving for them. It's been going well, with both children winning small prizes most months. Recently though, one of them won a much bigger prize, so they now have much more saved than the other. Should this be split between both children, or is that our child's decision to make when they're old enough?

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saajan_12

No.
1) Premium bonds inherently come with risk, as its a chance of winning each month rather than a fixed % interest which you would get a with say a Junior ISA. This chance of the pots becoming uneven should have been known and accepted. 

2) The premium bonds belong to each child. You can give but you can't take away from one child.

3) If the above reasons weren't enough, this will continue to happen.. how long would How long will you continue to even it up? What if one starts saving pocket money and hence gets a larger pot, or spends some of their pot.. do you stop then? Even if the other child got a bonanza after that? 

Leave well alone, and if you don't like this risk then move each child's pot to a Junior ISA. 

Brie

No.  One of them won.  The other didn't.  

FlorayG

Nope. It's their money they won it, even if they won it with money you gave them. if it's a substantial amount, ASK if they want to give some of it to their sibling and if they say "No" then 'no' is the answer here

born_again

We've bought Premium Bonds in the names of both our children 

No each has their own bonds...
So winner gets to keep unless they want to share. What next parents want the money back from buying them, or a share of the winnings 🤣

NP2024

That's exactly why I haven't bought Premium Bonds for my grandchildren. I couldn't bear for one of them to be a millionaire and the others get nothing!
I'm sure in the dim and distant past you used to be able to buy "group bonds" whereby several people benefitted and you could split the winnings between them. Or am I imagining it?

Mojisola

We anticipated this and had an informal agreement between all the family members - parents and children - that any winnings would be shared between us all.

Matt8888

This is ridiculous. It's not a moral dilemma. There is no right or wrong. Until they are 18 it is up to you to do what you want with the money you choose to put aside for them. If you want to even things up, do so. If you don't, don't. You can read 1000 responses, but only you know the amount, the circumstances and what you want to do. No decision is morally right or morally wrong.

rentawitch51

Really hard.
You haven't mentioned the ages of the children. Are they old enough to make their own decisions? 
I would hope they would share. 
I think I would leave the premium bonds as they are and switch to an ISA or income bonds for them.
Good luck. 

Susanvw

do the children know one has won a large amount?  If not then ask them both, without saying who won, what should happen to the money. Should they divide it or keep it?  Their decision. 

Southendormargate

You say you bought them in the childrens names as a way of saving for them. That is not the same as buying them and giving them to each child. It would have made more sense to buy them in your own name and split the money between them when they reach whatever age you plan to let them have them. If they were my children i would give them an equal share. You have been very lucky to win most months. I've had a premium bond for 64 years and never won anything.