Parents of 18 year olds...can I pick your brains please

ameliarate

Can't argue with any of the replies. my daughter is nearly 20 and extremely sensible with money.
I do think children are very different, sometimes regardless of how you teach them, I taught mine to save from a very early age. I think I would go with the account that is separate to the CTF so you can have a bit more control and see how they are with money by the time they are about 16.

*Louise*

I don't put anything into the CTF's. (I agree, the government should have set it at 21, but people would probably have complained at that)

I save for my 3 in savings accounts. If they go to university they can have the savings at 18. If not, it will be 21.

I never got a bean at 18 or 21 - so they should think themselves lucky

BillScarab

Mine were born before the CTF so they haven't got those anyway ( and to be honest I don't agree witht them). We set up funds with the Children's Mutual for them. You can invest a maximum of £25 per month tax free and it can run for up to 25 years. Details here

It's not going to give them a huge amount but will hopefull help around the time they finish university. They also have building society accounts for money they get for birthdays etc.

girleight@

A few of my friends inherited money aged around 21 or 22 and mostly used it as a deposit on a house. One friend didn't but she did get a financial adviser.

zekepes

I inherited £15K on my 18th birthday. I wouldn't say I wasted it - I basically put myself through university with it (my parents were losing their business during this time and were very skint - I even lent them £7K interest free for a while). However, there were certain points where I was definately over-generous with it due to naiveity.

I too have a CTF for our 4 yr old son. We put in the full £1200 in the first year, about £500 in the second and since then have paid a regular £100/month into it - so apart from the £700 shortfall in the second year we are paying the max into it. It has definately concerned me! Our plan is to teach our son about finances as he grows up (I don't feel my parents did this at all with me) and offer a major incentive for him to reinvest most of it when he is 18.

I teach 16-18 year olds (admittedly bright ones!) and I can honestly say that some of them are more mature than I am now at 35! As several of the other replies have indicated it is down to personality and upbringing how they will react to the money at 18.

Our plan is pretty much to double any money that our son re-invests as an incentive - I would feel quite worried about not having something like this or putting all the money you are likely to give him into the CTF for him to have at 18. I will also make sure that he fully understands the value of money and how hard we have worked to be in a postion to give him this.

I have started already on the education thing! I asked him twenty minutes ago if he wanted to go into town to spend his pocket money and he said no he wants to save it . I dare say that won't last!

BrunoM

I got £4k at 18 and it simply meant I didn't have to take a student loan out in my first year of University (and I bought a cheap car). Not the most life-changing experience but I was happy (and still am as I pay off the 2nd and 3rd year loans!).

foreversomeday

I think I'm going to put the CTF in an account and say to friends and family if they want to donate towards the CTF account they can do, but to bear in mind that DS will have complete access to it when he turns 18, and open a separate account for "sensible" things.

My sister and I had kids savings accounts in our own name and when we turned 16 they got transferred into an account which didn't need a parent to sign for withdrawals, but we both agreed with our mum that she would keep the books and if we wanted money from it we would discuss it with her first.

I spent most of mine on the deposit and first month's rent for my first flat, but as soon as I moved out I discussed it with my mum and we agreed it was more practical for me to have complete control. I was 19 at the time and ended up using it as an extension to my overdraft, intending to pay it back, but of course I never did. Since then I have decided I will not take money out of it unless it is for a specific purpose and will go without or struggle rather than use the money that is there as it isn't for day to day living really.

My OH inherited a fairly large amount of money when he was 17 and instead of it being held in trust until he was 18 he agreed to sign the money over to his mum who put it in a very high interest account for 10 years, and now he can't access it at all until he is 27. In one way this was a good move as he was completely useless with money at 17 and ended up with a lot of debt but now he has grown up a bit and we are expecting he could do with the money now. But he understands why it is there and as he has paid off most of the debts now he is going to finish paying them off with a small amount of the inheritance and then leave the rest for important purchases like a more family friendly car.

galadriel

Two out of my three children would have blown it on wild living, the eldest blew his on computer games and a pc - at least he had something to show for it.

Having three children and a small income I have never had much to save for mine, but they have all had about £2500 in savings, not much but every little helps. The eldest had some of his at age 18 for a new pc for college and then driving lessons, which he never actually had so probably went on more computer stuff/games. He had the last few hundred a couple of years ago age 23. This was a savings policy which matured - cheque in his name. I held on to my daughter's money as long as possible as she would have blown it in weeks, she set up her own home age 21 and was glad to have some money to fall back on. I am currently in dispute with my youngest - a savings policy matured last year - cheque in his name - he did buy a guitar and a laptop with it which were needed as he's a music student. I am using his savings account to fund his driving lessons but he is hassling me for control of it at the moment. He does have some Children's bonus bonds which he doesn't know about but I will cash these in if and when he needs it, maybe next year when he goes to uni.

I suppose it depends on the child, if a child is going to uni 18 is the right time to have control of the money, but for many it will just be frittered away.

patchwork_cat

How large? I think that at any age it is quite possible to blow money!! 18 would be useful though in if they were going to uni it would help with grants etc. If you raise the child always telling them that this money is in trust for uni, first car or whatever then after a good party that is likely what they will do with it. My children have a trust fund from their step grandfather for when they turn 18 - don't know how much it is but they both know that if it is a decent amount they will use it at uni .

oystercatcher

It really does depend on the child. My 18 year old is working and already has saved about 10K towards a deposit for a house . He's really sensible , as I was at that age. Many of his friends spend money like water though and haven't a clue or a care about it coming and going.

My 17 yr and 16 yr olds will be going to Uni and I plan to help as much as I can towards their fee's although I certainly can't manage the whole lot! I have been saving up their child allowaence and child tax credits in a seperate account ( in my name) to help towards uni costs. The eldest will get his share to go towards the house. I'm hanging on to the money until the last minute though as I'm still concerned that they could go mad and splash out on a fancy car or something similar.
I know some people much older than 18 who are hopeless with money though there's more to it than just age......

Oystercatcher
(pleased to be able to post while away on holiday!!)