" Our granddaughter is a single mother, and there's a state program that meets her 50/50 on cash down payments. We're going to give her $5K and the state's going to match that with $5K for a down payment.
That's very reasonable in our eyes. We also have a bunch of furniture to give.
Do yourself a favor and just give them what you can afford to give the couple. Then, let them handle the rest of the purchase.
Sometimes it's time to stand on your own two feet as a young adult. "
Great comment Bamaman
I had a sitdown with my two daughters a few years ago. I told them what funds I had available for them. They could either take it early as long as it was for a house/business
or wait and inherit it. At the time they were really upset as they didn't want to deal with my passing. They didn't want to talk about it later. But then years later my one daughter wanted to buy a house and asked if the offer was still available. I said yes and she used it for her down payment. She is paying ahead on her mortgage and has reduced the mortgage from $230k to 165k in one year. I think that was money well spent.
My other daughter is a school teacher and can't afford a house. In her case I am giving her her full Roth contribution each year. This allows her to save what she was contributing (not full amount) plus she can always redeem the Roth if she wants a house later. She was going to buy a house previously, and I cashed in my Roth's to cover her down payment, but the inspection found many expensive issues. Since my former Roth's are now taxable, I wanted to transfer to her as her own Roth. She wants to retire early and the Roth will help with that.
In this case it works out for both of them. And I get to know they are enjoying the benefit now, rather than when they are 65 or 70.
