Disappointed we didn’t save in child trust fund?

My in laws gave each of our children 3000€ when they were born and we opened savings accounts for them because we didn't know where else to put the money.

We also save monthly for them, but into something sort of like a discretionary trust fund which we don't have to pay out to them ever if we don't want to. I feel like 3000€ plus any birthday money they get over the years (50€ here and there) plus all those years of compound interest is more than enough money to let an 18 year old get their hands on.

Is there a particularly easy one that anyone knows of and recommends?

I set up a monthly investment in DD’s stocks and shares CTF fully accepting the risk that she may turn out to be a wild child who burns through it all in a month. Luckily she had a sensible head like me and I’m as confident as I can be that it will be used for a house deposit. It is the single best financial decision I have made in my life. I wish I had started doing the same for myself at the same time.

The figures for CTF varied so much amongst my DC friends...one had 80k! Parents suddenly realised the risk of handing that amount over to an 18 year and then had to backtrack and get it away from their child.

Op, don't beat yourself up. When your child gets to Uni the difference in lifestyles become apparent. One DC has a friend at Uni who has enough money to buy a student house outright, others struggle to live on the maintenance loan.

We did the same amount from birth, and it’s currently at £24k with a few months left to run.

I paid £5 a month into each of my children's. Ds 1 got £3k and the DS2 is about to get his and it's about £2.5k. I am sure they will both spubk the money and I'm OK with that!!

I think it just proves that a little goes a long way if you start early enough. It’s something I’ve tried to drill into my dd, so when she starts earning I’ve asked her to start a private pension, even if it’s just £10 to £50 a month, and the same with her mortgage, overpay a small amount to start with and it’ll result in big savings.

I paid in £10 a month into the CTF with the occasional £50 when I could afford it or someone had given me money for her and it’s forecast nearly £6000 by the time she’s 18 in 8 months time.

I dunno, are they likely to be talking to mates about how much they have received in their CTFs really?

Very likely, in my experience! They were all getting letters and it was exciting for them so they talked about it with their friends.

We put in a little bit each month by direct debit - not much! It’s paid for two years of university accommodation.

We don't save in our children's names either. They have birthday/ pocket money savings so a few thousand only in their names. That is all they will know they have
We do save in our own names and will step in with money when it's really needed! Nobody in this family will have the opportunity to blow huge amounts at 18 or early twenties like so many I knew at that age .

Comparison is the thief of joy.

I wouldn’t worry about it. My DD and her friends all blew their CTF money on a piss-up to Spain the summer they all turned 18. A lovely memory for them indeed, but not really a good use of the UK taxpayers’ money.

I know these don’t exist anymore but a small saving can add up. We put £50 a month into the ctf and grandparents added at Birthday and Christmas. It matured at over £25k. Enough for extra spends at uni and the rest into an isa for travel/car/house deposit. It’s not too late to stick a little bit into a LISA, which the government adds up to £1000 into.

Sadly hindsight is 2020. My parents never put into my trust fund, so I only got about £400. It stung a bit seeing my friends with thousands in theirs due to their parents, but I was still grateful for the money I had in mine. I’m sure every parent thinks, “ooh saving up some money here so my child can buy a car or their first flat etc” and I’m sure there are kids out there that do. But a majority of them, like typical youths, see the money and waste it. I personally cannot even remember what I spent mine on, probably clothes or something I desperately wanted back then 😂

That’s great and I’m sure the vast majority will be the same. However, there is a risk they are not sensible with it and why take that risk when you can just save the same amount in your own name?

Not a financial adviser! I use the Plum app for small savings and investments, it's very easy to use and has different pots with different risk levels etc and does a good job of making it understandable. Probably only available to over 18s though.

I haven’t added anything to ours and don’t intend to. I think CTFs and Junior ISAs are the worst products ever.

I topped up my older daughters when I moved so she has just over £10k and she is 15. Younger daughter didn’t get one but I’ll match whatever the end total is when it’s her 18th

No trust funds when mine were born but I saved £50 each per month but i controlled the funds, it was used to help pay for university.

The CTF provider will write to him just before his 18th birthday and ask him what he wants to do with the fund when it matures. It'll probably be best for you to chat to him first and advise transferring to an ISA. You legally won't be able to do anything with the funds without your son's agreement so please don't try.

I'd be wary of moving it into stocks & shares if she might need it soon. They should be a long term investment as they're a gamble on the market and recently it's been rocky to say the least. Look at the money saving expert website and see what's available. I'd be tempted to try to put in a fixed interest for next year at least as market is so unpredictable

We added to all 3 of our DCs, in stocks and shares. All 3 didn’t blow the money at 18. DC1 used theirs for a house deposit. Other two will probably do the same. All had/have 25k + . Over 18 years there is much less risk in stocks and shares so I’d definitely recommend that for those starting out. Relatively small amounts each month.

Dds just had hers, just short of £2000. I paid about £300 in when she was a baby and then couldn't afford it and stopped.
She got an apprenticeship at 16 and is earning so we took out a loan so she could buy a car (she's making the repayments) so the CTF paid off half the loan.
I'm pleased she used it sensibly.

You absolutely can get a decent car for a couple of grand, it's the insurance that will cripple. Dd has a black box and it's just short of 3 grand on a 13 yr old 1.4 Adam.