Sorry, I'm smack dab in the middle of a raging flu and should be in bed, but this post caught my eye and I feel compelled to insert my personal experience. Parents certainly have all the rights to financially plan according to how they see fit, but this particular post reminds me of the importance of setting up a trust for DD as opposed to "it will be yours when you're 18" type of situation. Anna Bees, you mentioned in a previous post that your child's gift money, etc. goes into the savings account. I'm just curious why you believe it is yours? I mean, I can see you acting as trustee of her funds until 18, but just can't wrap my head around why it is your money until she is of legal age?
The reason this bristles me is that my grandparents put a considerable amount of money in the bank for me when I was a minor. My bio-mom, Dad's ex-wife, fell in love with another man and used the money in my account to fund her wants, needs and desires. She was able to do this because she was named a custodian on the account. I don't mean to be all negative and stuff, but setting up a trust allows a legal recourse if one parent or custodian should hit the road with the cash. Once I bequeath money to DD, it is hers. When she receives gifts, it is hers. Funny story, but DH and I were completely out of cash this past Sunday and we asked DD if we could borrow $10 until we went to the bank. She obliged and we handed her an IOU. We paid her back. My parents actually borrowed money from me when I was a teen (I had a sizable account from working, saving, gifts, etc.). They needed some additional cash for a down payment on the house and I agreed to help fund that. We entered into an agreement and all went well. Sounds weird but that's why I think it is important to differentiate between parental money and child money. Just my opinion.
I completely agree.
If I were in that scenario, as the child, I would cash my own paychecks and keep the cash hidden in a shoebox until I was old enough to have my own bank account. I would also pay for every single thing on my own from the time I had a job. Those strings are not worth it.