On the idea of giving your children a down payment for their first house, I think that is a great idea. I have thought of doing that myself if we are able to afford it. I have thought of putting a condition on it though. My kids would only get the money if they had zero credit card debt.

Also: If you raise your kids right, even if you pay for their college education, they will not be slackers who “fooled [their] life away and partied.” With my parents, doing well in school was pretty much a moral issue, so even though they were willing to pay all of my college costs, I still graduated with honors and spent far more time studying than perhaps I should have. Even if you don’t go as far as my parents did, if you raise your kid to have sense, he should value achievement and know that his grades will matter in the future.

Plus, honestly, if you pay for your kid’s education, you will have far more control over their lives, especially if they don’t live with you anymore.

(And Trent, I have to laugh [or maybe cry] at the idea of a $300,000 “dream house.” It has ceased to phase me when I see ads for starter homes in the Boston area listed at $500,000!)

Personally, I feel even that is unnecessary generosity, but really nice of you!

What if they don’t want to get married or buy a house? Would you give them the equivalent amount of money to spend on something else (graduate school maybe)? Or money to be spent on a downpayment not linked to getting married?

I know they’re tiny, and will probably go on to lead normal conventional lives, but getting too caught up in the details of a dream can mean that you miss the point.

I must say, though, that in many ways it’s actually better. I feel like it’s *my* accomplishments. *I* paid for college with my own money (well, student loans, but they’re nearly paid off by now). I wasn’t just some slacker whose rich parents paid for me to attend an elite private school, while I fooled my life away and partied. It was my money, and I wanted to make the best of it, so I studied hard and made good grades. Likewise, my new home is *mine*. Nobody had to assist me in buying it. I bought it all myself.

This is not to diss you, Trent, for your own goals. I just grew up to be self-reliant, and as such, I highly doubt I will assist my own kids with college or homes.

I feel a better way is to simply train them to be financially savvy, like the rest of your posts. Teach them the value of money. Teach them how money compounds. Teach them how to work hard, and save, and to become self-reliant. I think the amount of satisfaction with oneself is much higher when you actually have to struggle and work hard to earn your own living.

The point of having an emergency fund is to have readily accessible liquid capital to draw upon as needed. But on 6 months notice, stocks will be just as liquid as a savings account. While stocks might suddenly drop in value, the risk of this occurring is balanced by the excessive emergency fund monies you have accrued.