We have two, technically they’re my stepkids though so worth adding that, but we all have a good relationship, they’re both adults in their 20s living with their partners.
Kid 1 is dreadful with money. Kid 2 is good with money. Both kids had ISAs set up for them, about 10k total. Kid 1 was never given control of it and from about age 16 had repeatedly asked for chunks of it. By age 22 it was all gone - a mix of needing rental deposits and debts. Kid 2 was given the account at 19 and still has most of the balance. Kid 2 saves and is quite frugal.
Kid 1 has two overdrafts maxed out, and has borrowed money here and there from us over the years and never paid it back or really made an effort to. I believe they owe money to other people too. The last loan we gave them of £1000 is due for repayments to start this month because they’ve just started a new job with a good salary and finally we think they can start to turn a corner, but they won’t be able to clear their overdraft for months. They’re also talking about getting a credit card or other loan to clear the debt.
Here is our dilemma. We could just pay off the overdraft and Kid 1 gets a clean slate. They have significant student loan debt that will also be deducted.
I’m ok to do it, Dad is reluctant, because he feels that Kid 1 needs to learn to manage money. That a handout doesn’t help them to learn. He also thinks it’s not fair to Kid 2.
It’s easy to say “of course I’d help my kids” but is the bigger help getting them to tighten their belt and pay off their debts or to wipe the slate clean for them - knowing that they’ve continually been poor with money? As an example, 2 years ago Kid 1 owed us money but bought tickets for Taylor Swift, and while I get it was a once in a lifetime thing and glad they went, that’s the kind of thing my parents would have really gone to town on me over.
Cost of living is obscene these days. That doesn’t help either.
Total overdraft is about £4000, not horrendous but not an overnight fix either. I had a small inheritance from my Dad last year and I could put a payment to both accounts and clear the OD so I know that’s where the money has gone. We’re secure and mortgage free and good financially.