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

RecRec

We had a similar situation but with 4 children. One got the full £500 from the Government, the second only £250 and the others got nothing. So we started them all at £500 and let it go from there. It was up to you to do something like that. The money is your eldest child's not yours and he is quite right to make his own decision. In his position I would not be offering to bail you out.

cardriver98

obviously from a parent with no money sense !  hopefully the kids will re invest most of the money !!

tasty_snacks

One of the datftess MMDs ever - low submission rate this week?

I can't imagine what you'd expect your kids to do if one of them ever happens to benefit from a stamp duty holiday, changing pension ages etc. 

Lockettlady2013

MSE_Kelvin said:

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?

Unfortunately the MSE team can't answer Money Moral Dilemma questions as contributions are emailed in or suggested in person. They are intended to be a point of debate and discussed at face value. Remember that behind each dilemma there is a real person so, as the forum rules say, please keep it kind and keep it clean.

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Neither child should have to give money to the youngest or there's a possibility the youngest will be better off than both of them.  The money put into the accounts by the government was for the eldest two only and your oldest child is absolutely right not to want to give to the youngest.  You knew this situation could arise and you should have made provision for your youngest.

jackie555

MSE_Kelvin said:

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?

Unfortunately the MSE team can't answer Money Moral Dilemma questions as contributions are emailed in or suggested in person. They are intended to be a point of debate and discussed at face value. Remember that behind each dilemma there is a real person so, as the forum rules say, please keep it kind and keep it clean.

If you haven’t already, join the forum to reply.
Got a Money Moral Dilemma of your own? Suggest an MMD.

You knew when your 3rd child was born that there was no available government trust fund. You didn,t want to give 3rd child a little trust fund so who do you think you are trying to force either of your first two children to give away what is legally theirs to do with what they want. It is not your business. As for what would I do....if  I was said first child i,d tell you to do one !!......If I was you i,d hang my head in shame coming on a forum trying to get total strangers involved to force your child to do what you want

Sly

I'm surprised at the judgement from others without knowing the financial situation of the poster. I guess it is unsurprising many MSE users are privileged, and perhaps most imagine the poster is too and has at least enough to save even a little. However, you don't know that. I'm not suggesting opinions shouldn't be shared, they are valid and welcome. However, ideally we could do that whilst also being mindful of the level of inequality in the UK and therefore, make less assumptions and judgements.

Spendless

From memory the changes to the CTF were announced not long after the coalition Government came into power in 2010 (I'm sure someone can correct me if I'm hazy on dates). Therefore this situation was known when the 3rd child was born in 2011. Putting £20  a year in an account from then till now would have 3rd child with £240 now even if it was in an account with zero interest. That would fetch them more in line with what child 2 is to receive. Even now a bank account opened and £50 per year would give £250  to the youngest. Cut back on something, give less of a present at birthdays/christmas because you're adding to a savings accounts. Ask relatives such as Grandparents if they'd pay into a bank acc instead of a present. Finding roughly £1 a week shouldn't be difficult.

Missy15

When my 2 children were born in the 80's we paid a set amount into a weekly Prudential account for both of them, to mature when they were 16. When my second child was born in '84 the amount had arbitrarily risen from 50p to £1 so she would end up with more at the end of the term
So right from the start I said when hers matured, my son would be entitled to half the difference, between his original  final amount and my daughters, as I had had no control over adding more to his. And thats what happened. It wasn't a lot but it's was theirs,and it was fair.
You should have provided for the 3rd child so they ended up with a similar amount as the other 2.

Pollycat

Sly said:

I'm surprised at the judgement from others without knowing the financial situation of the poster. I guess it is unsurprising many MSE users are privileged, and perhaps most imagine the poster is too and has at least enough to save even a little. However, you don't know that. I'm not suggesting opinions shouldn't be shared, they are valid and welcome. However, ideally we could do that whilst also being mindful of the level of inequality in the UK and therefore, make less assumptions and judgements.

I think you that you are wrong about 'many MSE users are privileged'.
Many come to MSE with severe debt issues - see DFW board.
Many post on the Old-Style board because they have limited incomes.

I think you have misunderstood the concept of Money Moral Dilemmas:

They are intended to be a point of debate and discussed at face value. 

With the limited information provided on these MMDs - including the financial situation of the poster - posters have no choice but to take the question at face value.

badgergirl20

I was the other way round, only my youngest got it, but I didn't ask him to split it with his brothers as it is his. Instead I saved a little bit for the other 2 for a couple of years so they had something. The youngest was just lucky!