DS Child trust fund

[Orangesandlemons77]

DS1 turns 18 next month and gets his child trust fund money. Think it will be about ten grand.

He's probably going to university next year.

DH is saying things like he should put it in an ISA to use for a house deposit.

I think he's an adult and it's his to do what he wants with

AIBU?

How sensible is he? I do agree that he’s an adult he should ultimately make the decision, but he probably needs some guidance. At 18 I would have completely wasted that kind of money and then really regretted it later, so probably would have (in hindsight) appreciated my parents stepping in.

DS has put it into the pot for uni - his loan is nowhere near enough to cover living costs (doesn’t even cover accommodation).

Encourage him to save it. Once it's wasted it's gone and it's a miserable lesson to learn.

Obviously you can't dictate how he spends it but if he wants to go to uni, ideally he'd use some of it for that. When DD gets her money, I'll be expecting her to use some of it towards uni and if she doesn't, she won't be getting top ups from me.

We’ve suggested an ISA to our DC. His is slightly more than your DS’s balance so we felt that it was right to give him some guidance. Obviously he could just go out on a spending spree but we have told him that once it is gone it is not going to be replaced

If the have an ISA can they withdraw money or need to give notice?

Does your DS know that he's getting this money? What does he think?

As a parent I understand why you'd be suggesting he does the sensible thing and saves it for a house deposit. However it feels like an opportunity here to have a grown up conversation about how to manage a decent sum of money.

I'd encourage him to think short, medium and longer term. He might have a bit of money now to have fun with, buy something he wants, go on holiday after A-Levels etc. Medium term he puts some money away to help with university and squirrels a chunk away for the future.

Technically he can do what he likes with it so, assuming that he's fairly sensible, he might make better decisions if he feels as if he's making them rather than being told to invest it for a house that probably feels like years and years away.

YANBU because he will be able to do whatever he likes with it.

Your DH is sensible, although perhaps there is a split to be made with ISA/accessible savings/some to spend.

My two spent a third and saved the rest, we had a conversation before they got it but ultimately it’s there’s to do as they wish.

Yes, he knows as the CTF people wrote to him directly to tell him he's getting it next month and needs to open an account.

We had mentioned it before as well.

I received a similar value lump sum at 18 back in the very late 90’s. I was given it with no advice, nothing and went on to spend it, clothes, nights out a few gigs whilst at college and upon leaving. It was soon spent and had nothing to show for it. To this day I would have loved for my parent to have kept a bit longer or given me some guidance or advice or a 50/50 split of spend some or save some. It would of made a difference.

A Lifetime ISA is a good idea to start at his age - can use towards the purchase of his first home or for his retirement. LISA's get an annual 25% bonus from the Government plus interest. Can put in a max of £4k per year (which the government will top up with another £1k).

Thanks

Ds1 moved his to an easy access isa. There is £20k in there now.
He also needed a student account opening.