Money Moral Dilemma: Should I cover the fees when I send gift money to my US-based grandchild?

MSE_Kelvin

This week's MoneySaver who wants advice asks…

I have four grandchildren - three live in the UK and the other has just moved to the US. I regularly give them gifts of money, and want to treat them equitably. But if I send them the same amount, the grandchild in the US gets less due to transfer fees and exchange rates. Should I top up their gift to compensate for the shortfall?

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tacpot12

I would say Yes, otherwise one grandchild is being penalised just because they live abroad. This might cost you a little more, but it's probably a small cost so that you can be scrupulously fair.

jackieblack

Yes

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Dextersgran

If you and one of your grandchilds parents have a PayPal account, you can transfer money over with no fee.

Jemma01

Did they travel there by choice or parents took them? If by choice, not your fault. You're spending equally. If parents took them, I would top it up.

Alternatively put it in an account for them in the UK, they can take it when they visit. That's fair and can build up interest for them.

MistysMum

yes, of course you should.

saveafewquid

You should have a free wise account. FX rates are market rate and Transfer fees are so tiny, it'd be an irrelevance.

Beauborg

No. Help the child learn that there are pros and cons to every situation. Living in another country may have benefits but also pitfalls.

This is also a good opportunity for them to learn resilience: life isn’t always meticulously fair but we can still be happy

Ed264

Opinion here so far is that you should. I agree.

bikaga

If they're old enough to have their own accounts, there are options to save on fees:

• Set up an account in the UK with a card that lets you spend free abroad, e.g. Chase
• Use something like Wise as suggested above
• Get a pre-paid holiday spending card in $ which you can top up so you only have to pay exchange rate, not a transfer fee

Obviously whatever works best for you and the grandkid.

Some other options:

You could consider giving more but less often to the grandchild in the US so that the transfer fees become less relevant.

Or you could ask them if they're saving for anything and get a savings account for them here, then when they're ready to buy it you can transfer it all at once with a single transfer fee. (Or they might have plans to eventually return and would appreciate a savings account waiting for them then.)

Basically - if they're old enough, ask them (and if not ask their parents) what would suit them best. Saves you the second-guessing, and they might just ask you not to make a fuss as it's not your fault they moved and they're just happy you think of them ;)

2702

No. What are you going to do when the exchange rate goes up or down? Agree with Bikaga there are options available.