If your child receives an athletic or academic scholarship to college, should parents give money saved as gift

Question

to their child or children as a reward for their accomplishment?

Answer 1

most scholarships require the student keep a certain GPA to keep the scholarship. college is a fun place.... and sometimes even the best of students in high school can end up doing poorly in college. i think it would be a good idea for the parents to hang on to this money in case the scholarship is lost. and if the student keeps their scholarship all the way through school, then maybe give it to them as a graduation present!

Answer 2

There is no rule that a parent MUST pay for their child's college education. The money that they have saved, in most part, required that they sacrifice above and beyond the normal expenses of raising a child. I believe that the parent has every right to spend the money as they wish and it wouldn't reflect negatively on them to reward themselves for raising such an outstanding human being that qualifies for a scholarship. Let the parents keep THEIR money.

Answer 3

Not unless that was the original understanding. Even assuming that it is a full scholarship, covering every imaginable expense of going to college, it represents a certain degree of scrimping and doing without for the parents. It is, after all, their money. It is a sign of maturity that you no longer expect your parents to supply you with all your wants and needs, getting a scholarship is a wonderful thing, but it doesn't mean you get to live in your parents pockets as a 'reward' for doing the right thing.

Answer 4

Hold off on giving all the money as a gift. Give a generous amount but keep the rest in savings or whatever type of account it is presently in 'til after college.
Way too many unforeseen things can happen where your child may need the money in the furture. Even the most responsible child may be careless with too much money in their possession.

Answer 5

You could give it as a gift (or even to purchase decent transportation for the child). Use it for the extra expenses the child's scholarship will not cover. Set it aside in anticipation of the child's wedding and/or grandchildren. Or be charitable and set up some sort of scholarship fund for the less fortunate.

Or spend some on yourself and take a nice vacation when the child goes off to school.

Answer 6

I once heard someone on talk radio talk about the subject on saving for college with the what ifs. He had talked about the various investment strategies and the different situations that could happen at college. The talk show host suggested to save it for some other purpose such as for a downpayment on a house. However, it should depend on the individual student how and when the money is given.

Answer 7

i would save it!! what happens if the get injured? What happens if their GPA doesn't stay at scholarship requirements? Even though they have the scholarship now, there is always a chance they can lose it! you might need that money for school tuition in the future!! maybe it can be used for grad school or a graduation present!! If you give it to them now...it will be gone and wasted before they ever graduate! invest part of it, put some in savings and maybe...just maybe...give them a little bit as spending money...maybe 500 a year.

Answer 8

Why not use the money to start a prepaid VISA account for your child while he or she is away at school. Then you can simply add to it as needed and you will need to add to it!lol

Answer 9

I would give it to them as a gift AFTER THEY GRADUATE.
or, I would take a vacation.