Financial control at 16...

[PB Mum]

Reading the thread on pocket money has prompted me to think about '16' and control of such things as Premium and Children's Bonus bonds, if they have them. We bought some of each, as and when we could afford to, with a view to them being able to use them towards university fees, moving on from home etc at 18y...but of course, 'legally' they gain control at 16y. We have told them about the premium bonds (as the occasional win is a bit of fun), and our 15y-old is borrowing against hers (with a contract to repay me, and a spreadsheet which I keep up-to-date )....For the moment, they're both planning to stay at school to 18y (one will have the 'legal option' of leaving 17y, the other not), although no decisions beyond that yet.
At present, they're not at home to 'receive' post, so it can be filtered, but from 16y, with various notices will be addressed to them....
It raises a few dilemmas, doesn't it ....any thoughts? How've you dealt with it, if you've yet had to...?

[hermanmunster]

It is difficult as some are very financially savvy and others aren't at that age. Agreed it is odd that some things come under their control at 16 and others at 18..... I never bought any PBs for them as was slightly worried that if they came up wit a big prize it might be quite difficult to manage - instead they are all in DH and my names and if they come up with anything other than the inevitable £25 then I would share it with the kids (and pay some more uni bills)

[PB Mum]

Hmmm..by big prize, I assume you mean that all-elusive, life-changing biggie ...their PBs are on a re-investment programme as they have nowhere near the maximum. We were also conscious that, if in our names, they would be included in our estate for IHT purposes...and these things, sadly, do happen...
You don't have to be 'only 16' to be daft with money...but we can't protect them indefinitely, however much we 'd love to

[daughter]

I have to say we got caught out by this - and still haven't resolved it. We bought Childrens' bonds (or something similar) for DC1 &2 and always intended to use it if and when necesary. We never got around to buying them for DC3 but thought we can just divide the money by 3 ... only to find at 16 the oldest 2 have now got the letter/money. We have explained to them that DC3 has none - but haven't really resovled it. I imagine we are going to have to come up with an equivalent lump sum for DC3. DC 1 and 2 haven't touched theirs as there is a further bonus is they keep it in place until they are 21. Retrospectively if we had known I would have withdrawn it at 15 yrs 11 months and divided by 3!!!

[Waiting_For_Godot]

I have to say that I'd be ashamed of my children if they acted this way. I hope you've told them this.

[daughter]

WFG - is that comment directed at me in which case I don't understand what you are saying? DC haven't "acted" at all. Sorry if I have misunderstood you (or you me). Please can you clarify. Thanks

[aliportico]

Daughter, I'm in the same position. My grandmother bought dd1 and dd2 bonds, then was ill and died not that long after ds was born and clearly it wasn't a priority! My parents said to me at the time that they had the money put aside for him from her estate (we are talking hundreds, not thousands). Whenn dd3 was born, she was in time to get the money from the govt, so that seems reasonably fair. But my parents have never said anything else about any money for ds, and I feel a bit bad to ask, lol! So yeah, wondering what do to ....

Hadn't even thought about them turning 16, and dd1 does later this year. Hmmmm.

[daughter]

Aliportico thank you for your supportive comment.

I have to say I am deeply upset and disturbed by WFG's comment and having seen that so many people have read this comment and stewed on the massive insult to me and my DC I feel I need to comment further.

I have read and re-read my message and find it difficult to understand what I should be ashamed of about my DC about - I can only think that either I am reading it differently than others or I don't know what.

I will try to clarify what I was saying ...

I came into some cash (redundancy) when my oldest two DC were little - the best option at the time seemed to be to invest it in Children's bonds -(which have to be taken out in their name). The money was always considered to be rainy day money for use by the family as and when e.g. for uniform, school fees, school trips etc. As "family" money we had expected that it would be used and or available to any children we had.

We have been fortunate and never had to dip into this "rainy day" fund and at the age of 16 DC1 and then DC2 received letters about the money which was now legally theirs as in no longer "mine/family". DC1 was thrilled to receive the letter as we had never discussed this money. When we realised we spoke to all 3 DC and told them there were only 2 lots of money between the 3 of them. They accepted that and understood that as a family we would resolve this in the future. It was not necessary to decide how at that point as it is beneficial to leave the money in place until they are 21yrs old.

That is the end of the story - it is not resolved as I mentioned in my first post because we have not decided how to do so. Possible resolutions are that each sum is divided by 3 at maturation of the investment or DH and I come up with the cash for DC3.

If we had thought it through and known that the money became legally theirs at 16 we may well have dealt with it while the money still remained "family money" within my legal control.

I hope this makes more sense????

I have to say that I'd be ashamed of my children if they acted this way. I hope you've told them this.

I am categorically not ashamed of my children and I am very upset and insulted that you have implied that I should be. Even if you did misunderstand my message I am shocked at what you are implying.

Hope this has cleared things up and that i will be looked upon more kindly.

Daughter

[Waiting_For_Godot]

Sorry, been busy. Your last post contradicts your first post which I thought implied that your other two wouldn't share the money. I don't want to pull your thread apart but you have said it is not resolved when mentioning spilt between three and that you will probably have to find a sum of money to give to DC3 - why if your other kids are happy to share it? I apologise but the implication, in my mind, was that your children were refusing to share the money. As it is, I can see how this could happen and if my children behave in this way, which they may well do at some point in their lives, then I'll be ashamed of them.

[daughter]

I don't believe my last post contradicts my first post it merely clarifies it.

The situation will be resolved - this will depend on all of our circumstances at the time (3 ish years away). My Dc are very kind and I have no doubt that they will act in an honourable and appropriate way. Here's hoping one of them is a city fat cat by then and they might give the money to DP's ( joking - unless things change we will be more than happy to find funds for DC3).

WFG apology accepted.

In reply to OP - yes it does raise a few dilemmas with DC getting financial control at 16.