Child Trust Fund Vs Savings Account

MissBehaving

I wonder if someone can give me some advise...
We have a CTF for my daughter which has the money that the govt has given to DD.
However, she has a piggy bank which has about £150 in it.

My question is - Where do i put that money?
Do we put it into the CTF or put it into a savings account which she can not get access to until she is 18?

Would anyone be able to suggest which bank would be the best?

Thanks

Mikeyorks

Read the section 'Is it worth adding to it' on this link, which is just at the top of this thread :-

http://www.moneysavingexpert.com/savings/child-trust-fund-vouchers

..... it's a significant piece of good advice. Mine would be to consolidate other savings elsewhere - so you have jurisdiction, until you choose otherwise. Sounds like a lack of trust. But there is no more devastating diminishing of trust than to see an 18 year old blow the savings you have consolidated in their first few months of Uni. And to realise you either let them sink .. or have to bale them out with more of your money as an allowance for the remainder of the 3/5 years?

Your choice of account - as it very much depends on whether you will add to it regularly - or just ad hoc?

MissBehaving

Thanks Mikeyorks... No worries about lack of Trust... DD is only 4!!! Will have a look at the link...

Mikeyorks

MissBehaving wrote: »

DD is only 4!!!

Yes, I did realise she was pretty young - the presence of a CTF gives that away (started 2002?).

When I said 'sounds like a lack of trust' .... I was meaning that's how you potentially feel about yourself. When you start off on a course of action that's designed to keep the money in your control - until you decide otherwise?

Mine, until 17, was sensible and amenable (to parental 'suggestion' :rolleyes: ). But things changed dramatically as he was departing to Uni - by which time it was too late to bring the money back into our control. Some £10k later - in the first 5 months - we had to decide whether to bale him out with an allowance, or let him sink. Obviously decided on the former course of action - but it cost us a lot in terms of both money .... and that thing called trust.

Martin doesn't admit to having kids - but the bit I've pointed you to shows a remarkable insight, that I could have written for him.

It's your choice - but you did ask the question. And enjoy the next 14 years with her - 'cos then it starts to get harder.;)

Elliesmum

Mikeyorks wrote: »

Yes, I did realise she was pretty young - the presence of a CTF gives that away (started 2002?).

When I said 'sounds like a lack of trust' .... I was meaning that's how you potentially feel about yourself. When you start off on a course of action that's designed to keep the money in your control - until you decide otherwise?

Mine, until 17, was sensible and amenable (to parental 'suggestion' :rolleyes: ). But things changed dramatically as he was departing to Uni - by which time it was too late to bring the money back into our control. Some £10k later - in the first 5 months - we had to decide whether to bale him out with an allowance, or let him sink. Obviously decided on the former course of action - but it cost us a lot in terms of both money .... and that thing called trust.

Martin doesn't admit to having kids - but the bit I've pointed you to shows a remarkable insight, that I could have written for him.

It's your choice - but you did ask the question. And enjoy the next 14 years with her - 'cos then it starts to get harder.;)

I am so glad you have written this as you have answered an un-uttered question that I have been mulling over in my mind for a year or 2.

I've just read the article and I too do not like the idea of DD (who is also 4!) having a spending spree with the money we've spend years saving for her. Soooo I've opened a savings account of which I have joint control and of course she has her CTF.

As far as I'm concerned the only account I'm going to let her be aware of is the CTF - that she can *blow* in an instant as we have never provided this money and the other account I'll drip feed as and when required (if I need too of course!!!!!)

Thanks for your experiences.......... you've been a great help.

EM xx