Investing for grandchildren

LyndaW, if the kids have enough toys, how about books? I think saving money for the kids is great, but not something they can enjoy right now on their actual birthday.

Message deleted by Gransnet. Here's a link to our Talk guidelines.

Thread is 11 years old but probably still relevant to others.

Our grandchildren do not need any material goods or extra toys. So…. Since they were babies we buy each of them a small token present to open, and also remind them we’re adding to their bank accounts. Do the same at Xmas. They all like it- knowing when they are older they’ll have enough for driving lessons, car or similar.

We set up junior ISAs for the Gdcs some time ago. By the time they’re 18 they should have turned into a useful sum - we just have to hope that they will be sensible enough not to blow it all.

I have drafted letters to be given to them on their 18th birthdays (in case we’re no longer here) to (gently) say as much.

I do still buy birthday/Christmas presents (as long as I know of something they would really like) or give them cash, but the presents won’t be anything very expensive.

I would advise caution about when to give the GC their bonus. Some 18 yr olds are too immature to handle it wisely or heed advice.

My friends husband was killed by maniac driver in a car accident, leaving no Will and two toddlers. The other drivers insurance made a huge compensation payout, and intestacy law required the childrens share of his estate be held in trust until they reached legal adulthood at 18.
At 18, the eldest was a wild child but there was no way to hinder her access to her money; she took it and ran away with an older man/ gangster . Within two years he and the money were gone leaving three lives irreparably blighted.