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Trustworthy teens?

in Money Saving Polls
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Former_MSE_AndreaFormer_MSE_Andrea Former MSE
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Poll Title: Child Trust Fund (CTF) vouchers have now been distributed. The money goes direct to your child at 18 and then they have absolute control. The Government is encouraging parents to use this as their 'college fund' savings vehicle as you can add £1,200 a year tax free. Which of these statements best matches your opinion?

a. I won't add to it, 18 year olds aren't responsible enough
b. The tax advantages outweigh the risks; I'll use it as the main savings vehicle
c. I'll add to it, but will save money elsewhere too, to offset the risk

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Replies

  • CaixtaCaixta Forumite
    226 Posts
    I was having this very conversation with my husband this morning as our baby's CTF voucher arrived in the post.
    This baby is the youngest of four and his siblings won't have a CTF because they're too old.
    My husband's reply was that we have been bringing up the older three to be really frugal and canny consumers. They get pocket money and we've taught them to budget and save, and they've learnt from their mistakes along the way. So he said Baby should be ok when he's 18. He has every faith in his boy. (I guess it's a bit too soon to tell what sort of character he'll be.)
    I wouldn't have minded if the age was raised to 21 but I don't suppose that can be done as they're legally adults at 18.
    "By not unsettling men, you will reassure them. By unsettling men either through timidity or malice, you are always compelled to keep a knife in hand." - Niccolo Machiavelli, 1469-1527
  • sleepysleepy Forumite
    391 Posts
    I think teens can be trustworthy.
    I'm 20 and in my last year at university. I worked part time from when I was 16 until I went to university and managed to save £2,000 from my wages over this time. I put this in a mini ISA to use as emergancy money at university. My Nan then VERY generously gave me £1,000 for my 18th birthday and this joined the rest in the ISA.
    I didn't touch that money at all in my first year at uni, so had over £3,000 saved up. Then last year I decided that I really, really wanted a car, so I used some of my savings to pay for that (which my Nan is happy about, I think she's relieved that I didn't drink my way through the money - why do students have such a bad reputation?).
    I used some more of the money to pay for a compulsary field trip with the university (this compulsary field trip cost £1,000 but my parent paid half).
    But I still have enough saved to pay the first 2 months rent on somewhere to live when I first graduate, when money will be tight.
    I am eternally thankfull that through a combination of my own hard work (my boss at the part time job always knew who to ask when they had overtime that needed doing) and my Nans generosity I had the savings to use as and when I needed it. I think I have been sensible with my choices, and I'm sure most other teenagers could be just as sensible
  • MSE_MartinMSE_Martin MoneySaving Expert
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    For me the point isn't 'can teens be trustworthy' its more 'can you risk yours won't be at that age'.

    Many teens are very responsibile, but you just don't know when they're in the cot whether they'll be one!
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • IvanOpinionIvanOpinion Forumite
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    We don't have kids so the payout will not affect us however as taxpayers I am sure that I will be contributing (so I expect a big thank-you fro all parents). I also see this as a cynical ploy by a totally corrupt government to win votes in an election year.

    However (now that my chest has lost some weight) as a taxpayer (which gives me the right to have an opinion) I think it is a good idea as long as the money is spent sensibly e.g. on education or training. I do however believe that in many cases much of it will be spent on alchohol, tobacco and designer clothes with the rest just being frittered away. Maybe if control over the money was retained by the state in the form of vouchers it would stop this from happening e.g. the majority has to be spent on education/training, some could be spent on travel, some could be spent on a car/bike etc.

    Ivan
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  • SpendlessSpendless Forumite
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    Thank you Ivan and all other tax-payers in which i'd like to include myself (for over 15 years) and my husband : - P

    My youngest qualifies but not the eldest and to be honest i don't like the fact that she can spend the money as she chooses at 18. She may spend or save the money wisely but she may not. Impossible to tell (she's nearly 2). I have a lot of friends and family with teenagers which makes me wary of what the money will go on.

    We have a savings account for eldest with one of our names on, it will only be given to him when he is at a point when he'll need the cash. University,house deposit, car. This might be at 18 but might be later on in life.

    I'd have also liked to have seen a voucher system so the money could only be spent on certain things or as another poster mentioned a higher age than 18 before you get it.

    Not sure about whether it's an election ploy or not - it was first mentioned in April 2003 (few days after i had daughter). It is for children born on or after Sept 1 2002. Sep 1st is the start date of a new school year. The cynic in me thinks when the first of these kids are coming up 18 that's the year that they'll be some other charge introduced for university/college to take into account this money given.

    BTW - Ivan - are you aware that i can not return the cheque even if i don't like the idea. In the event i don't invest in somewhere (i've got 12 months to do so) it is invested by the government on my daughters behalf.
  • robnyerobnye Forumite
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    We don't have kids so the payout will not affect us however as taxpayers I am sure that I will be contributing (so I expect a big thank-you fro all parents). I also see this as a cynical ploy by a totally corrupt government to win votes in an election year.

    i agree, i can only see this as a ploy for the government to gain votes.......
    smile --- it makes people wonder what you are up to.... ;) :cool:
  • IvanOpinionIvanOpinion Forumite
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    Spendless wrote:
    Thank you Ivan and all other tax-payers in which i'd like to include myself (for over 15 years) and my husband : - P
    Thank-you for your thank-you
    BTW - Ivan - are you aware that i can not return the cheque even if i don't like the idea. In the event i don't invest in somewhere (i've got 12 months to do so) it is invested by the government on my daughters behalf.
    If anyone does not want the money then they can always donate to a charity that I work with ... just make all cheques payable to !!!!!! (Serious Help for Ivans Taxes).

    Ivan
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  • Nick_C_4Nick_C_4 Forumite
    110 Posts
    My son qualifies for a CTF. However, I'm saving for my son's education in an ISA, not in the CTF.

    Why? The main reason is the the money in the CTF belongs to my son. It's not really a question of trust, it's more that at this stage a) I don't know whether my son will go to university, and b) I don't know how much it will cost. Instead, I'm contributing plenty into an ISA. When he's old enough to go to university then we can sit down and work out how much is a fair amount to give towards that. If he doesn't go to university, then maybe he's doing something else we'd be happy to give towards. If we've got loads more money than is needed, then that's a bonus, we can use it for something else. We're using the CTF to hold any gifts that are given to our son, from other relatives, and maybe from us too. He can spend it on whatever he wants when he gets it. I like to think it's going to be something constructive, but it'll be completely up to him.
  • SpendlessSpendless Forumite
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    Nick - that's more or less what i'm going to do. If i contribute at all it won't be so much that i begrudge it being blown at 18 (if that's what happens).

    Al Mac- i am in the position where one qualifies and one doesn't. We are putting the equivalent away for the eldest that the younger one has automatically got.
  • Former_MSE_AndreaFormer_MSE_Andrea Former MSE
    9.6K Posts
    1,000 Posts Combo Breaker I've helped Parliament Rampant Recycler
    Forumite
    Poll Title: Child Trust Fund (CTF) vouchers have now been distributed. The money goes direct to your child at 18 and then they have absolute control. The Government is encouraging parents to use this as their 'college fund' savings vehicle as you can add £1,200 a year tax free. Which of these statements best matches your opinion?

    c. I'll add to it, but will save money elsewhere too, to offset the risk 45.9% (326 Votes)
    a. I won't add to it, 18 year olds aren't responsible enough 44.9% (319 Votes)
    b. The tax advantages outweigh the risks; I'll use it as the main savings vehicle 8.4% (60 Votes)
    Total Votes: 709
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