Money Moral Dilemma: Should my eldest child split their Child Trust Fund savings with my youngest?

MSE_Kelvin

This week's MoneySaver who wants advice asks...

I've three children, born in 2005, 2008 and 2011. My first and second child received Child Trust Funds from the Government; my third didn't, having been born after they were available. My first child received £500 and my second £250, and we've not topped up either account. My first child's has now matured and is worth £880, and I think they should give half to my third child, as they only have the money as they were born in the right year. Needless to say, first child doesn't agree... what would you do?

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Pollycat

What are you going to do in 3 years time when the middle child's Trust Fund matures?

Take half the value from them also and give to the youngest?

It's not your eldest child's fault he was born in 2005.

sheramber

Wy should the forst child lose money?

What about  the second child getting less that the first should they not also get a share?

If you werre concerned about them all getting the same amount you could have topped up the second child's account and opened an account for the third child and deposited the same amount.

But there is no guarantee that all accounts would realise the same amounts.

Spendless

No they shouldn't. You should have taken this into account years ago. My eldest born 2000 never got it, my youngest born 2003 did. We opened bank accounts for them both and initially paid in a little more to the eldest's because of it. Ok there wasn't loads in there so neither complained about interest rates, but we made it that one wasn't receiving something and the other nothing.

ashleypride

The money in the kids trust fund is theres alone. You shouldn't be guilting your kids to give away their money.
If you don't think its fair, then give your own money to the third child.

roubiliac

It’s their money now, nothing to do with you.

Rmkoya

It's on you for not saving for the youngest, not the eldest. It would be unfair to take money from one child to give it to another, especially because you as the parent didn't care about fairness back in 2011 or since then.

My eldest got the £250 and only in recent years have I been able to top it up. My youngest wasn't born at the right time but I took it upon myself to open a child ISA and start saving for when they're 18.

I use Beanstalk and send a roundup amount automatically each week, even if it's just a few quid being split between them. Look into Kidstart as well as they do cash back which will be put into accounts for your kids. 

lhead123

No, it’s their money and for them to do what they like with.
 

One of our children got a Child Trust Fund, the other didn’t. 

The one that didn’t, we’ve paid into a children’s ISA since he was born. 

They’re both on track to have around the same amount when they each reach 18. It will be their money to decide what they want to do with (though we will try to steer them in the direction of something sensible!)

Fletch123

No definitely not it’s belongs to your eldest child why should he share it with your youngest 

Reader18

Absolutely not! This is their money not yours and you will cause nothing but problems and resentment if you push for this. Gordon Brown always intended that this nest egg would be added to by parents and family and that even small sums (like birthday money) would grow into a savings pot that would help a child as they reach 18, it’s seems a shame that you did not do this or save for your younger child  so don’t pass this burden onto your older two children. 

Bazzahazza

Hells no, it’s not your eldest’s fault.