Child Trust Fund squandered?

Garnet_Gem

A recent survey came up the information that the majority of children will squander their Child Trust money on socialising and buying stuff like the equivilent of ipods. I'd prefer it if the children could get the money at 21 instead of earlier. Does the thought that your money may be frittered away put you off contributing to a child's Fund?

Hapless_2

Haven't contributed and have no interest in the child trust fund. It was forced upon us.
Highly unfair that 2 of our children are entitled and 2 are not so have no interest.

gazza975526570

Depends on how you bring up your kids i guess.

I wouldnt mind mine using some of it to enjoy themselves - indirectly it actually save me money as they can use that instead of having to ask me directly for cash!!!!

So long as longer term they used the majority for something more practical i dont have a problem with it and regularly contribute to both my childrens funds

Horace

When I was growing up my parents used to pay the child allowance that the government paid them for me into a high interest account. When I started working and paid them rent for living at home (although this was nominal about £20 a month - I wasn't earning much at the time but I made up by doing housework etc), that too went into the same high interest account. The money was then used to pay for my wedding and some has since been used by my parents for repairs to the house (a house that was gifted to me several years' ago - to avoid the curse of inheritance tax!). I never had access to the account itself as my parents kept full control of it.

nomoneytoday

Why not leave the £250 where it is, and then open another account which you will give them at 21 or 25 at your chosing?

Mikeyorks

I consider the definitive advice is here ('Is it worth adding to').

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

Children change - and the quiet amenable 16 year old is potentially the 17 year old who blows his (for 'his' .... read 'mine' ... as I saved it all) entire 'Uni' pot of over £10k in his first few months away. IMHO there are less tears ... and less eroding of trust ... if you keep it in your jurisdiction.

HugoSP

Hapless wrote: »

Haven't contributed and have no interest in the child trust fund. It was forced upon us.
Highly unfair that 2 of our children are entitled and 2 are not so have no interest.

....so you make up the £250 for the other children when you can, and smile that the gove have given you £500 towards your children.

I'll never forget when I was in my early 20s my girlfriend came by a brand new free personal stereo (walkman type thing) that came with something else that she bought. Neither of us needed it (it was pink!), but we knew of one person with 2 daughters aged 10 and 12 both of who would have loved it.

The problem was which one to give it to?

I suggested that she gave it to the mother to decide. As it happened she was needing christmas presants for them anyway, but couldn't afford to buy two personal stereos, so she accepted this from us and was able to buy a second equivilent stereo by combining what she would have spent on each of them.

To my mind the same applies with the children's trust fund. Neither of our children got the bung as they were both born well before labour were elected. However if we had a third child who was entitled to it, we would probably make up the amount for the other 2. So it's £500 out but £750 into your children's future.