topic Your First Grandchild in Among Friends

Your First Grandchild

YorkieonmyPillow — Wed, 29 Aug 2018 17:10:24 GMT

When you found out you were going to be a grandmother, did you set up a savings account for your future grandchild?

Or perhaps a life insurance policy?

Re: Your First Grandchild

Brigitta — Wed, 29 Aug 2018 17:13:38 GMT

Yes we did set up a savings account for our grandson. We are now using it to pay his tuition at college. Good thing we did, his mother hasn't any money to help him.

Re: Your First Grandchild

dragonflyveb — Wed, 29 Aug 2018 17:18:10 GMT

I set up a 529 college account for my grandson. It’s a win-win for all. He will get help with his tuition, and I get a tax credit from the state!

Not too often do you get a win-win!

Dragonfly

Re: Your First Grandchild

chrystaltree — Wed, 29 Aug 2018 17:23:44 GMT

Life insurance? Why would a grandparent do that? We did not open a bank account for either of our grandchildren. Nor do we intend to. Both our girls and their husbands are well paid professionals with college degrees. We paid for our girls educations, now they have joy of doing that for their children. It's possible that down the road, we might help out with medical or law school tuition, which isn't uncommon for grandparents but that's a long way away. We'll be paying for Disney Vacations and family trips to Hawaii.

Re: Your First Grandchild

YorkieonmyPillow — Wed, 29 Aug 2018 17:36:11 GMT

@chrystaltree wrote:
Life insurance? Why would a grandparent do that? We did not open a bank account for either of our grandchildren. Nor do we intend to. Both our girls and their husbands are well paid professionals with college degrees. We paid for our girls educations, now they have joy of doing that for their children. It's possible that down the road, we might help out with medical or law school tuition, which isn't uncommon for grandparents but that's a long way away. We'll be paying for Disney Vacations and family trips to Hawaii.

As I understand it, a grandparent can buy a life insurance policy for the grandchild and the $$$ accumulated can basically accrue like a savings account for him/her although admittedly I don't know a lot about such matters, that's just what I've heard.

Grandparents buying life insurance for grandchildren is a rather common practice.

Re: Your First Grandchild

Mz iMac — Wed, 29 Aug 2018 17:39:11 GMT

Well, the first thing I did was to remind everyone, that I was too young to be a grandmother. Since the "other" grandmother was already called one, she will continue to be "grandmom."

I am NaNa.

The 2nd thing I did was purchase stock. Cashed it out a week before the 18th birthday. Gave him the $$$$ & told him, to spend it anyway you wish or save it. It's on you. Don't let your parents touch it. It's yours you earned it.

Re: Your First Grandchild

Mistreatedbycs — Wed, 29 Aug 2018 17:47:56 GMT

My mom set up CD's for the kids but wait, she gave the kids their money when they entered college, my sister later asked why x didn't get the same amount as y and z and so on. Oh my gosh, free money and it was thankless. We're not talking hundreds, we're talking thousands.

Why it wasn't the same amount but the kids were 2-3 years apart of from each other, different rates, different times etc.

Mention money and you'll have problems.

Now you have your first well when the second comes, how are you going to equalize them both out...you're not. Nothing but problems to come.

I personally didn't believe grandma's should aid in the grandchilds money, it's the parents responsibility, you did your job with your daughter or son, let them be responsible now.

If you want to buy them something, get a gold coin from the US Mint, no one will ever have an issue with gold.

Re: Your First Grandchild

BirkiLady — Wed, 29 Aug 2018 18:56:22 GMT

Set up a Trust Fund for my grandson which includes stocks, mutual funds and other investments. He won't have access to funds until age 30. His parents and I have input on how monies are invested.

His parents have already funded his entire education and received the income tax deducations (if I remember correctly). My grandson will be 12 in December.

My DIL has four brothers; all have several children. Therefore, my grandson's other grandparent's simply do not have the money to set up anything for all their grandchildren. If not able to do for all; don't provide for one. Cousins talk; don't ruin their relationships with monetary gifts. My grandson is so fortunate to have so many cousins on the other side of the family! That is a huge gift our family is unable to provide.

Re: Your First Grandchild

elizabethl123 — Wed, 29 Aug 2018 19:13:02 GMT

hubby and i set up one for her she decided no more school for her. get this she wanted the money no way was over 50 grand we cashed it in and got our money back plus interest . we started one for our g/grand girl now shes 5 the money we got back is now in her account .

Re: Your First Grandchild

Imaoldhippie — Wed, 29 Aug 2018 19:19:29 GMT

Do whatever you can afford and want to do, but be sure you can do the same for all the grands that come along in the future.

Re: Your First Grandchild

Wiscfan3 — Wed, 29 Aug 2018 20:25:11 GMT

I agree that you should do whatever you want and can afford, but future grandkids should be treated equally. It may sound petty but kids (and adults) do compare and it is hurtful when it comes out that some are getting more than others. It is only human nature to want those types of things to be fair/equal. Yes, there may be different needs and circumstances but grandparents should be fair.

Re: Your First Grandchild

insomniac2 — Wed, 29 Aug 2018 20:31:24 GMT

I cannot afford to do anything like that.

I will keep him supplied with books, however!

Re: Your First Grandchild

Carmie — Wed, 29 Aug 2018 20:51:07 GMT

Nope, I have never set up any thing for my grandchildren. My oldest son has two kids. He and his wife make a lot more money than DH and I. They can afford whatever is needed, but I do buy them whatever they ask me for for birthdays and Christmas.

My daughter struggles financially. ( she is married to a loser) She has one daughter. I buy most of her clothing and fund almost everything she needs. This girl is a wonderful student and very smart. She was upset because her parents can not afford to send her to college. I told her not to worry about it. I will pay for her if she works to keep her grades up. She is in 8th grade, so I have a few years to go. I figure I can't take it with me.

Re: Your First Grandchild

IMW — Wed, 29 Aug 2018 21:05:33 GMT

Gave the parents $$$ to start a 529, let them have the tax deduction. Every birthday and holiday we add to it.

Re: Your First Grandchild

dulwich — Wed, 29 Aug 2018 22:01:23 GMT

We paid - and are still - financing college education for our three grandchildren. Two now working, teacher and CPA our third at law school in final year. All doing well worth every dollar spent and glad we could do this. Love them all very much.

Re: Your First Grandchild

Catiele — Wed, 29 Aug 2018 22:05:22 GMT

No I never even thought about it. Just happy to be a grandmother. My thoughts were to love and enjoy him which I did. We did give generous money gifts plus toys and clothes. His father could afford college for him but he chose not to go.

Re: Your First Grandchild

nana59 — Wed, 29 Aug 2018 22:11:59 GMT

@Imaoldhippie wrote:
Do whatever you can afford and want to do, but be sure you can do the same for all the grands that come along in the future.

my thought exactly....what i do for one grandchild, i do for the other three....that's how i want to be remembered.....

Re: Your First Grandchild

Financialgrl — Wed, 29 Aug 2018 22:21:01 GMT

@Mz iMac wrote:
Well, the first thing I did was to remind everyone, that I was too young to be a grandmother. Since the "other" grandmother was already called one, she will continue to be "grandmom."
I am NaNa.

The 2nd thing I did was purchase stock. Cashed it out a week before the 18th birthday. Gave him the $$$$ & told him, to spend it anyway you wish or save it. It's on you. Don't let your parents touch it. It's yours you earned it.

I did the same thing for 2 nieces and a nephew. The girls were the same age and my nephew came 1.5 years later. When the girls were 10, I began dollar cost averaging into the stock market each month and the money was put on a separate line item to segregate it. I put it in moderate to aggresssive holdings and I just let t ride till the youngest was 18.

At that time I pulled it out of the stock market, divided it by 3 and wrote each a check for their third of the money. One niece used it toward a new car, the other used it to defray college costs and my nephew used it toward his first apartment. In my case I never told anyone I was doing it so if I lost a lot of the money it didn't matter bc they never knew to expect it.

Lots of volatility over those years and it turned out they each got a pretty sizable check.

Re: Your First Grandchild

Sadiesadie — Wed, 29 Aug 2018 23:39:52 GMT

We started a 529 when our oldest grandchild was born and add to it automatically every month. When our 4 year old twins were born we did the same thing. It's not a ton of money but should help some when it is needed.

The other grandparents have quite a bit of money but I have a feeling, if they wish to give them money down the road, the grandmother will put a stipulation that she will only give them money if they go to a certain school....their alma mater.

Re: Your First Grandchild

sandy53 — Thu, 30 Aug 2018 00:01:15 GMT

We have two granddaughters and bought each a life insurance policy when they were born. The policies were a one-time payment and guarantee insurablity for their lifetime.

We also started a 529 plan for each girl. We add to it on their birthdays instead of giving them more "stuff" that they don't really need.