Financially helping my children or grandchildren

You may also be considering helping out younger family members. Gifting can assist them in getting into the property market, in paying for their education, in covering for their wedding expenses, in taking their holidays, or even in covering for their shortfall. You may also be considering simply giving them large sums as Christmas or birthday present. The question is: can you afford to?
Before gifting a significant amount, it’s important to understand how gifting will affect you financially – including the impact on your Age Pension and other social security benefits you receive. Will you receive less income? You will also need to consider how gifting will affect your lifestyle long term. Will it cause you to run out of money sooner, leaving you short?
Depending on where the money is coming, from it will have different tax ramifications.
Make sure that you set gifting expectations carefully, as recipients can very quickly come to expect, and in some cases, depend on those gifts.
Remember that it’s your money, first and foremost. You need to ensure that you are financially secure and will continue to be after the gift has been given, as you can’t take it back. Nor do you have control over how they end up spending the gift, as its theirs now.