One of my husbands relatives died?

Question

and has left my twin 16 year old boys 5000.00 each. Would you keep your mouth closed and hope they do the right thing with the money, or make them put it in the bank...my husband and I are having a small disagreement about this. My husband says it is their money....and they are old enough to make a decision on how to spend it, that it will be a lesson to them. I think it would be ok to spend a little, but it needs to go in the bank....what would you do?

Answer 1

If I were in this situation and my kids were reasonably responsible hard working kids, I would let them keep 10%  ($500) in a liquid savings account to do what they want with.   The other $4500, I would require them to put into an interest bearing account of some sort either for college or an IRA.  I'd actually probably lean toward having them stick the money in an IRA...I've heard the figures somewhere, and putting a couple thousand in an IRA at this age will net them MILLIONS by the time they retire, and wouldn't that be a great legacy?

Answer 2

16 and lots of money?  Depends on how responsible your kids are.  If I were 16 again and something like that happened to me, I'd be better off if my parents put it in the bank.  As long as they're under your roof and you're responsible for them....  

Answer 3

I agree with you they need to put it in the bank. But If you and your husband are well off , I would say let them decide on what to do with their money. Of course at 16 if they are not responsible -they will blow it real quick, but it will be a lesson learned. But If you are not well off, make them put in the bank and tell they why. Ex: It can be put in an interest saving account, it can be use for a car, senior year of high school (all the expenses for prom, graduation, etc), or it they are going off to college they will have some money in savings.Whatever you decide make sure it will will be a teaching lesson. I am 33 and I wish someone would have explained to me about credit cards in college and how it will affect you in the future with jobs, loans, and even getting a house. So please talk to you teen boys, good luck with your decision.

Answer 4

I see how you are right only because you already know the value of money... what if you take them to the bank and get them some financial advise without you sitting in the meeting - so that they have the knowledge to make a decision.  if they go through the money and waste it then it will also have an impact on their life now because they will see how fast money goes if they don't save and budget instead of you forcing them to do this and loose the opportunity to learn this right now and not when they are adults (late).

Answer 5

I would discuss the money with them and let them know it's a wise idea to save what they can.  If they are wanting a large item, and do buy it, the money will be gone.

It's simple as that... however, you and your husband need to come to some agreement about whether they get part of all of the funds at once.  So, that's the first issue you and he need to get through.

Answer 6

I think they should be able to spend $1000 on what they want and the $4000 should go into the bank.....and they can have it when they turn 18...thats what I would do in my situation if I had one like that....good luck!

Answer 7

i would let them keep so much, and make them put the rest in the bank-sort of like a compromise

Answer 8

I would first tell them that it is their money but they should them think about their options. Remind then that this is a good time to make informed choices. Then, I would give them some suggestions on what they should do with their money. Then, cross your fingers and hope for the best.

Answer 9

Give them the money. It should be interesting to see what they do. Really, what do you think that two boys that passed up a party because of their character would go crazy with 5.000.00?

I think that they would me a lot more likely to donate it to a good cause than squander it. Let's just see what they do.

Also, I would make a wager that they will make you proud of their decisions. Any takers?

Answer 10

I would give them $200 to spend and the rest in the bank and maybe it could have interest.

Answer 11

good question,its their money advise them to save it