My three kids have a few thousand dollars between them (lucky little ducks – gifts from grandparents and great grandparents). They have two accounts each, one is a working account and one is a high interest bearing account. The interest they earn is (of course) not as high as the interest we pay on our home loan. I’m thinking that their money would be much better off sitting in our home loan account where it would be working harder for us as a family. But I’d feel so bad cleaning them out. But then I feel bad anyway because there is a much better way to manage that money, I feel like I should be modelling that behaviour for them (i.e making the most of your money, not just letting it sit there). So if I do clean them out, when should I let them take control of their money? 10, 12, 16??? I have no idea. And how do I do that? Do we go back to the working account/high interest bearing account thing? Or shares maybe? I was thinking that we’d give each of them a lump sum that would more than cover the money they had “lent” us over the years when they turn 18.

Suggestions and experiences very welcome.