I would not hand an 18yo a chunk of money if it is not for college or other training/trade school. If that kid got to mid-30s or older and is working, self-supporting, and wants the money for something like a business investment or a home, I would be inclined to give them at least some of the money. Yes, it is for education but if a kid is a successful adult without college, I would consider it a sound investment. I wouldn’t feel compelled to match exactly what it would have cost me to support them for four years of college, however.
I agree with another poster. This is your money. Unless it’s in a 529 fund it can be used for anything. If your child chooses not to go to college then you have no obligation to give them the money. If you choose to help your child, regardless of the reason, or even just choose to give them the money then it is up to you. Most of the savings we had for college was in a 529. If for some reason it is not all used we will likely either use it to fund our possible future grandkids or take the tax hit and use for ourselves.
Yes. Depends on the kid and their plan. I could easily see investing in a business they start with a good business plan.
We have set up meetings with our kids with our broker and banker. Both have had discussions and set up plans. They are still in college. When my daughter graduates this spring she will meet again with both for ideas of how to save /invest going forward. FYI. I would do the same if they were not in college and working. Let them set up good habits now.
Each of our kid has a 529 set up for them since they were born. We told them that the money is theirs, eventually, and college is a must (this goes without saying). If they chose a school with full pay tuition and use up the money from their account, that’s their choice. But if they want to go to school that gives merit scholarships or full ride, the difference is theirs as the down payment for their first home. My D chose the former. Son maybe doing the same thing when the time comes but who knows. Our kids have the travel blood in them they would want to live in new places where they didn’t grow up in.
I realize that 529 is for education but that’s the least of the problem. We can use it however we want just with a little bit of penalty. Or they can keep it for their future children. The point is the money is theirs.
It all depends on your kid. If I thought there was some chance my kid would be taking a big portion of money from the investment account against my advice, I wouldn’t do so. Resisting the temptation to take out and spend the money and developing a good investment habit is also something your kid has to learn. There is always some risk.
I’m not that rich, but if I was yes. If you’re going to spend $300k on kid #1’s education, then giving kid #2 $300k toward a house or a condo would be a fair way of distributing funds.
Equal doesn’t exist in my house…I’m not even sure fair does anymore. I don’t keep score of what I spend on them. One kid has had huge medical costs the other hasn’t, one goes to public school, one private, one has been on a lot of spendy (for my income) trips, and the other doesn’t. Throw in the added detail that they have different fathers with very different opinions on what is important and their life experiences are completely different.
But yeah, if I was rich, it might be different.
I would also add that some kids have disabilities, medical, psychiatric, developmental, or other challenges that may justify more parental support regardless of college status.
Yes - our eldest went to get his associates at a CC and landed a wonderful, abundant job. He needed to move and we gifted him money for a down payment on a house.
Put me in the “no” camp. However, I’ll throw in a curve ball. D is a perfroming artist. That’s what she wants to do. That’s all she’s ever wanted to do. Quite amazing actually to know what you want in life when you’re 8 yr’s old. So, if she gets shut out for admissions to the very selective programs she’s applied to, rather than go to a school just to go, I would pay for a year of advanced training / coaching and have her reapply. Actually know a few kids who did this and are now at top theater schools. They just weren’t ready.
I don’t think that will be an issue with her but we’ve discussed the possibility. We’ve also discussed how I won’t be just paying for her to live in NY wihtout college involved. She asked me if I would just spend what I would have on college and let her live in NY and audition for four yrs. Immediate “no” came from my mouth.
She hit me with “but that’s my dream” and I responded with, “I know, but it’s not my dream and it is my money”.
@rickle1 keep it a no for New York. I know someone’s kid there now auditioning and it’s not positive. I am familiar with this world also. Let her get an agent and see if anything is there. Do it the right way. All these kids think they are good until they meet the kids “that” are really good. At the very least starting in a smaller market for training might be the way to go. Just a suggestion. Good Luck.
@Knowsstuff Couldn’t agree more. Agent and regional theater is the most likely path with or without school.
I compare these kids to athletes. The ones that get selected to the top programs are like your D1 athletes. Huge talent level difference between success in HS and that. And then the talent level seperates again when you “turn pro”.
I’m a realist. She has a legit shot. It won’t be easy. It will take talent, timing, representation, and luck. Perserverance is key as lots quit every day.
Sorry to take the thread off track…