Reply to How common is it for young adults to receive life changing amounts of money from family?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Can’t give you a precise answer but our trust is set up so that if we die while the kids are in college, school is paid for. After that they don’t get anything until about 35 and then again at 40 or 45. I think the split was 30/70. [/quote]

I’d rethink this and give money sooner before 35. What if they want to marry? Or buy a house before kids or even be able to afford kids? Dh and I waited for kids. We wanted to save money and buy a house. But then we needed infertility treatments. Money earlier would have made a huge difference. It wouldn’t have changed our career trajectories though. [/quote]

This mentality of throwing your children to the wolves when they are young and really need help - and conversely, helping them later on when they no longer need help - is so stupid.  So many life expenses are frontloaded at precisely the time that income is lowest.

For example, college.  You can graduate [i]summa cum laude[/i] and no one pays you a dime (apart from possibly scholarships) - you still need to find a way to eat.  Same goes for graduate school, weddings, down payments on a house, buying a car, furniture and having kids.  Far better would be, if you have the resources, to give each of your kids $500,000 between the ages of 18-28 and allow them to enter adulthood with no debt (other than a mortgage later on), a healthy emergency fund and possibly even some investments that will have plenty of time to compound.  This is not so much money that they can be dilettantes but enough so they are not burdened by excessive struggles.

It will probably even teach them financial responsbility.  If they know they're getting $500,000 and no more, for example, they may opt to go to UMD and keep more of the cash instead of going to Swarthmore and blowing $250,000 on a Russian Lit degree.[/quote]

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