Trust Funds for your Kids? Anyone?

[grub17]

my parents had one for their three kids... I used by $8000 when i was 20 for a 6 week european trip! best spent money ever! My brother invested his and my sister bought furniture/whitegoods etc for her first home... So not all teens waste lump sums.

We opened a term deposit with high interest in DS's name when he was born. He's 14 months and has more tah 5500K already! my brother gave him $2000 straight off tho instead of buying a baby present and we put all his various bits of money into it, and gave it out when various family members wanted to give him money when he was born and on his christening we also put in $10 per week. We plan to give it to him when he turns 21.

We also pay the tax on it as we worked it out as being better than putting his money into a "children's account''.

We will do the same for the next bub... wonder if uncle money bags will be so generous again?? lol.

[Hansie]

I recieved an amount at 16 from my grandparents that they had held in trust.

We have a bonus savings account for both DS' which we put $15 'pocket money" per DS. On the anniversary of the account being opened the money is transfered into an attached account earning zip. We then withdraw the money & invest it by buying shares through E-Trade which we opened in trust also when they were born. DS1 has over $6000 inc money Grandparents gave him plus half of the baby bonus. We also opened him an ASG account to save for school each year this increases by 8% each anniversary. Not sure how much is in that. DS2 is just starting out so not as much, but with DS2 we haven't opened a ASG account as after further research it is very restrictive with it being a balanced fund and for the time we are investing for we can be a little more risky imo. Instead we save the same amout as DS1 but once we reach $500 - $1000 we buy more shares. Hopefully the E-Trade trusts & ASG will give us the money to pay for there education/sports/music etc as well as have money to help them to do whatever they want in the future travel, house, car etc. We have no real age set out for them to recieve the money just as they need it. We do have it in our Will's that if anything should happen to both DH & I then they would have control over there portfolios at 21.

[Gigi]

wow, this thread is an eye opener. I feel embarrassed bilby has no bank account. I'm about to start an account with The Smith Family (to save for her school expenses next year when her schooling begins). I spent the baby bonus on what we needed in the first two years of her life. (no flat screen tv i promise).

[Astrid]

wow, this thread is an eye opener. I feel embarrassed bilby has no bank account. I'm about to start an account with The Smith Family (to save for her school expenses next year when her schooling begins). I spent the baby bonus on what we needed in the first two years of her life. (no flat screen tv i promise).

Don't feel bad, whilst the kids have accounts, we had to spend the baby bonus on living expenses after dropping an income, so they got none of that.

[~Jayne~]

I'm so glad I opened this thread!!! Has given me so many ideas!

After I read Hansie's reply, I must admit, I remember now Jess has $4000 floating on the stock market in places. We invested her savings a few years ago now & then the market crashed, so we have just left it be, until they go up again - one day we will sell them & she will get the cash back into her account. I completely forgot about this!!! lol

I really fear for our children when they go to buy their first houses, cars, enrol in University or want to travel the world. Money just can't buy what it did in 'our' generation. More than anything I fear about how our children will afford to pay mortgages - this is the reason why I want to do some kind of investment saving plan - just to give them a helping hand, you know?

Such good ideas on here! I love it.

[Olive]

one bit of advice..do i through a bank, not a finacial institution..we did it for our girls and now our money is STILL frozen from the GFC... who knows when we will get it back, at least banks are garaunteed by the government. we're owed lots
we have also set up high interest bank accounts and we add $30 each per month, both DH and i have to sigh to allow money out

[Livinthedream]

Gigi, dont feel bad hon, we dont put any of our spare money into DS acc, we use it to improve our house or pay our mortgage. he lives here, so those things benefit him too.
DS bank acc is made up of $ given to him from family, and often if the family give the $ to me, I just use it to buy clothes and essentials for him, he has enough toys
I dont know any other mother that spends as much time trying to make their childs life safer/healthier/happier than you do.
I also used the baby bonus to pay household bills, as far as I am concerned the baby bonus = maternity pay, its not a bonus for the kid who was born LOL