A relative gave my kids money at birth which i invested in Shares. The shares halved in price. I decided I would forget about the shares and triple the initial gifted money and give it to the kids as a gift from the relative when they were 17/18 to put towards a house, car, or uni fees. I told the relative my plans and after a while the relative wanted the money back, which I gave back. I will give my kids a gift from myself instead when they are 17/18. They currently have about $150 each in savings. I let them do what the want with it. When we are shopping and they ask for stuff that I don't think they need I give them the choice to pay for it with their own money. It's amazing how much they put back! At times they ask me if they can do jobs and get paid for it. Sometimes they'll be saving up for a particular item, or just want to splurge on iceblocks at school or lollies from the shop. Their current school does banking so I'll be setting up accounts for them.
Sunflowers
- Thread starter Xenia
- Start date
that's shocking.
I found that strange too
Perhaps depending what they do with it I might feel they could have used the $ better, but I coulnd't see myself asking for it back because of it... a gift is a gift
Yep, not a nice gift at all but typical of all the other broken promises from the family member!! I think we should leave it there though and stay on topic.
I just wanted to point out that after my first experience of investing money for the kids future I wouldn't attempt to invest their savings again.
I just wanted to point out that after my first experience of investing money for the kids future I wouldn't attempt to invest their savings again.
From memory Vanguard Index funds are low costs and you can invest minimum of $500 or $1000.
Cheers,
Oracle.
I don't find the cost benefit of investing the kids birthday/christmas, or some form of 'locked away savings till 18', as the amount at maturity would not be all that amazing, whilst the child is missing out on the joy of presents through the most present-induced joy part of life.
I have two cousins whose parents have not allowed them to spend any money they have received from birth to 18, and they both ended up with less than 5k, essentially chump change. I put the children's ability to enjoy presents at special occasions above such a piddly amount.
Teaching them saving towards goals yes, evil penny pinching joy destroyer no.
I have two cousins whose parents have not allowed them to spend any money they have received from birth to 18, and they both ended up with less than 5k, essentially chump change. I put the children's ability to enjoy presents at special occasions above such a piddly amount.
Teaching them saving towards goals yes, evil penny pinching joy destroyer no.
Agree - it's too long term for children, especially the very young, and if all money given is forcibly saved because parents insist, it could backfire (missed opportunity for learning smaller goal savings and reward).
However, chucking a good 20k or so into a Listed Investment company in their name at each childs birth will be something I will be doing.
Thanks Oracle, but no, Vanguard require minimum $5,000 initial investment.
We even even rang them and asked if they would lower this starting amount for children, but they wouldn't.
Caroline
We even even rang them and asked if they would lower this starting amount for children, but they wouldn't.
Caroline
Lilly: Another option is that you put the money in a Listed Investment Company such as Australian Foundation investment.
That way you can put in a minimum of $500+ if you sign up for a free amount of trades through a broker such as Commsec.
But then at such small amounts, is it even worth the time?
That way you can put in a minimum of $500+ if you sign up for a free amount of trades through a broker such as Commsec.
But then at such small amounts, is it even worth the time?
ANZ have a product that allows you to start with $1000.
http://www.anz.com.au/personal/investments-advice/products-services/online-investment-account/
Thank you for the suggestion CJProperty. I think a small amount, invested regularly (weekly for my kids), does add up to a useful amount over time.
Rob - that ANZ account is exactly the sort of thing I was looking for. Thanks heaps!
Caroline
Rob - that ANZ account is exactly the sort of thing I was looking for. Thanks heaps!
Caroline
