Disappointed we didn’t save in child trust fund?

[Bambootrees]

DD is turning 18 and received the letter, she has £559. It was always in the back of my mind but never sorted it out.

We have spent in other things for them and given them lots of experiences, invested in their education, trips, opportunities, etc; but I can’t help feeling disappointed; especially since other friends are receiving letters and their parents have invested/saved.

Title should not have a question mark; it is a statement not a question

My dd is turning 18 next month and is receiving £1600 ( give or take a pound or 2 )

I didn't add anything. I wasn't in a position to.

I dunno, are they likely to be talking to mates about how much they have received in their CTFs really? I guess it might come out if people want to spend it on stuff, but what's done is done, so no point regretting.

We didn't put anything in initially and I couldn't when we had childcare costs. About 9 years ago we were on holiday with some mates (who all earn more money than me) and putting money into CTFs came up in discussion. Not how much or anything, but a couple of people said they were doing it and I felt bad because I figured they were probably putting in a lot. So I started a small amount since then that has gone up since.

There’s not much you can do about the trust fund. Can you top it up when she cashes it or start a new savings account for her future. It’s never too late.

We started putting in a small amount monthly a couple of years ago and it meant my child got just over £3k when they turned 18, which they were delighted with and helped them buy a car.
Most of their friends got a similar or a smaller amount, however 3 got over £20k, 2 of them have blown the lot and have absolutely nothing to show for it!
18 years old is not the right age to be coming into huge amounts of money!

Thank you. It was very small, but earning of £59 in 18 years are pretty rubbish, aren’t they? Reading other threads some have grown more without even putting any money.

What can DD do with it? She is looking at 2k second hand cars. She also worked for a year; but very busy with exams around the corner.

I got mine to use their money to start a pension! Boring but again it wasn't much (oops) and I can pay a small amount into their pension monthly until they start work and can do it themselves.

Yes, we could have dome similar; DD would have been delighted with 2k or 3k. I can’t help to feel disappointed. She is not a spoiled child and quite conscious but have mentioned some of the other parents of her friends have saved. I know she was disappointed but didn’t want to say much and said it is ok I still got £500.

Honestly I'm not convinced getting access to a large sum of money aged 18 is a sensible idea. 18 year olds have very poor risk assessment skills and are prone to being impulsive. You don't know when your child is young what they will be like at 18 and whether they are likely to blow it all on drugs, buy a sportscar, or invest sensibly.

We just put £10 birthday cheques from distant relatives in ours plus a small inheritance they got (a few thousand). And they have around 7k to show for it. Luckily DD1 (18) is currently very sensibly continuing to save. But there was a time a couple of years ago when I was terrified of what she would do with this money.

If you want to save/invest for their future there are other ways. Maybe something which keeps it in trust for them until 25 or something. Or keep an account still in your name but be saving it to give to them when they have something you agree with spending it on eg house deposit, buying a car, world travel, whatever.

Have you got the money to help with the car now?

My mate scrimped and saved and her ds got 8k..
Blasted the lot on 10 months. Nothing to show for it whatsoever..
Imagine having to witness that?. He had a great job and didn't even pay board.. An absolute tosser imo.
Your dc has some memories to bank away instead of cash.
Worth more imo.

Well I would have loved the opportunity but the scheme closed before I had dc.

If the CTF only earned 59 in 18 years, you probably left it in cash rather than a stocks and shares CTF. That latter would have most likely grown exponentially in 18 years even without even for you to contribute anything further.

I am guessing that is how the poster who also did not add anything ended up with a 1,600 CTF for her dd.

Yes, I think we may have to do that. She has been looking at lots of second hand cars. Can she get something decent to start for 2k?

Probably. I got the letter in front of me. Feel even more disappointed now.

Maybe I ask her to move it and she can start saving?

Probably can get the car not sure about insurance it’s very expensive for the young new drivers. You should not feel guilty you sound like you have given her a good upbringing like someone else said some kids get loads and blow it on crap at least your dd is grateful for the amount she has it’s better than nothing.

Thank you, agree hopefully the experiences will make up for it, I just think a few thousand would have help her to buy a car.

I may suggest to her to move it to a stock and share isa and start saving on it.

Thank you. We certainly want them to learn to value things. They have had good opportunities but DH and I have worked hard to get to where we are.

Gosh, please don’t worry.
i stupidly didn’t change the address when we moved, so although I’d put it in a good fund, we lost whatever we’d earned. It’s just as well as she became trans and would have spent it on testosterone. So kind of glad.

Well tell her 3 out of my 4 got it (around £500 mark) but the youngest won't and there is no way we can save it for her due to ill health and other costs. Life can be a bit unfair but most kids now won't get it.

I thought the government said the trust fund was traceable you just have to contact them or your dc does. Some people forgot who they banked it with and some didn’t bother but the government done it for them so it should still be available.

This is an idea also. What pension did you do? Any advice?

We had one child within the CTF era and one just after so we had to open a junior ISA for the youngest otherwise it just wouldn't have been fair.

Don’t beat yourself up about this. You’ve supported her in other ways, it doesn’t matter that you missed this one particular option / opportunity.

Help her buy a car now (she will absolutely get something decent for £2k), and if you are in a position to, tell her to keep the £500 and investor for her for growth (ie stocks and shares, not cash).

Dont stress X

Thanks will do that, I didn’t even think the funds were in cash and not stocks 😧