Longer Term investments for Children

goldenballs_2

Hi Folks

We have two kids - 3 1/2 & 1.

I was hoping to save about £50-£100/month for them.

The 1 year old has a CTF account - £250. Not really keen to put more in this.

Anyone any suggestions.

My main current account is with Abbey and I am happy with the service I get from the local branch.

Would I be better to put the money into premium bonds for them?

TIA

GB

EdInvestor

Just as a matter of interest, what's wrong with the CTF account?

goldenballs_2

Maybe it's just me, but I can't help worrying about an 18 year old having access to £x,000.

If it was me I would probably have spent it.

The other way we would have control.

Unless you cud convince me otherwise.

GB

dunstonh

That is the worst thing about the CTF.

You can set up a regular savings unit trust (much like the ISA) but have it in your name, re the child. For IHT purposes, you can record the contributions as a record of a gift, so avoiding that potetential slip up.

People's_Will

goldenballs wrote:

Maybe it's just me, but I can't help worrying about an 18 year old having access to £x,000

It's not just you. The peer group pressure to blow it on a celebratory post-A Level holiday will be too great.

It would have been better for the government to have left the maturitydate to age 21 or 22 when the reality of student debt would have set in.

BWZN93

Hopefully by the time the first of the CTF kids get access to their money, personal finance would have been made a mandatory part of education and the reality shown to them before they even get near it.

Alternatively, teach them personal finance ourselves and show them the benefits of having a large cash sum behind them.

Failing that, they learn a hard lesson like many of us on the boards have! Im sure a few will blow the money on rubbish, but id like to think that for the most part the money will be used for things like education, career and property.

It certainly would have been better for the age to be 21, or even 25!

Jo xx