Page 6 | Disappointed we didn’t save in child trust fund?

blueshoes · 12/04/2025 13:30

Hazeby · 12/04/2025 08:50

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

You are cutting off your dcs' nose to spite your face. Money is money. Totally neutral. It is what you do with it. There is a huge array of 'products' out there as to how to invest CTF money. You could have educated yourself on the options for your dc's benefit.

Sadly, it is your dcs who lose out. Will they even claim their CTFs at 18 if you are so sniffy.

CombatBarbie · 12/04/2025 13:30

Bambootrees · 11/04/2025 22:55

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.

Edited

Mine got just shy of £3k. Looking at the overall statement, alot was lost when the market crashed because of covid.

blueshoes · 12/04/2025 13:35

MillicentFaucet · 12/04/2025 13:27

Some providers have been helping themselves to generous fees over the years so the fund may not have grown by very much at all

Show quote history

Yes, investment 101. Investors cottoned on to high fees and the trend in the last 10-15 years or so is to buy low cost index funds. That is why the ETF (exchanged traded funds) market has grown in recent years.

Actively traded funds with high fees have largely fallen out of favour. But so long as the fund has risen because the underlying investments are risen (which is very likely over 18 years), the high fees in themselves just mean that the fund will not grow as much as the exact same one which had lower. But it will generally over 18 years still grow by many multiples of interest had that sum been invested in cash/savings.

Original poster

Bambootrees · 12/04/2025 13:46

Looking at previous statements it doesn’t seen to have dropped much. It grew from £250 to £559. It is HSBC. It seems to have grown year on year. Albeit slowly, each statement came with a DD that we just put away 🥲

The most depressing thing is that DH and I are both professionals in good jobs, but not good a financial planning.

DD14 got a £50 voucher and has £70 😟

OP posts:

Seriously79 · 12/04/2025 13:51

How do we access sons account. He is 18 soon and I totally forgot about this.

Original poster

Bambootrees · 12/04/2025 14:02

Thank you all. I would stop beating myself up. We have invested on lots if things for them.

I think is best she transfer it to a LISA or a stock and share ISA and she and us can save on it. Any advice welcome.

OP posts:

MillicentFaucet · 12/04/2025 14:05

Seriously79 · 12/04/2025 13:51

How do we access sons account. He is 18 soon and I totally forgot about this.

HMRC link
You can use this official HMRC tool to find it

Child Trust Fund

Child Trust Fund accounts - find a lost account, how to make payments, managing the account

https://www.gov.uk/child-trust-funds/find-a-child-trust-fund

blueshoes · 12/04/2025 14:06

Glittertwins · 12/04/2025 13:20

@blueshoes- we have done the same as you in putting more money into our ISAs because we already put the max into their junior ones.
We also live in an area where most properties wouldn’t be eligible for the house ISA thing so that’s pointless for us.

Edited

Same here.

LISA is a trap where we live as there aren't many properties below 450K in London. The only other way to access the LISA is to wait till you are 60 in which case since the money is locked up for so long, it is more tax beneficial for a working person to invest in a pension than a LISA.

Pessismistic · 12/04/2025 14:09

I think you probably thought the government put 500 in as this was the plan by labour then the tories got in and stopped adding to it then pulled the plug for later babies you would have just set up a standing order from your account to her trust fund. I would not worry about it now you did what you could and she has a free 559 to spend.

blueshoes · 12/04/2025 14:11

Bambootrees · 12/04/2025 14:02

Thank you all. I would stop beating myself up. We have invested on lots if things for them.

I think is best she transfer it to a LISA or a stock and share ISA and she and us can save on it. Any advice welcome.

OP, it is best to speak to an independent financial adviser (IFA) who can advise you on the suitable investments based on your and dd's circumstances.

SoSoLong · 12/04/2025 14:15

I think you should be happy for not throwing good money away. That fund has basically lost half its value considering inflation.

Original poster

Bambootrees · 12/04/2025 15:19

blueshoes · 12/04/2025 14:06

Same here.

LISA is a trap where we live as there aren't many properties below 450K in London. The only other way to access the LISA is to wait till you are 60 in which case since the money is locked up for so long, it is more tax beneficial for a working person to invest in a pension than a LISA.

Show quote history

That is good to know. Thank you

OP posts:

Original poster

Bambootrees · 12/04/2025 15:20

blueshoes · 12/04/2025 14:11

OP, it is best to speak to an independent financial adviser (IFA) who can advise you on the suitable investments based on your and dd's circumstances.

Show quote history

Thank you. I tried before to speak to an IFA and he was not interested in me as salary no high enough; doubt it they will be interested in my daughters

OP posts:

TheChosenTwo · 12/04/2025 15:26

We didn’t put a penny into them for either of our dc. We had a third born just after the cut off period too.
Both the older 2 ended up with about £550 in theirs, both used it towards a holiday. Fairly sure they started off with £250 but I didn’t even bother with choosing where to invest it, they just opened it for us with whoever it was. I really didn’t take any interest in it tbh aS we have saved ourselves for them to get them both driving and bought them cars etc, paying for uni and so on. What they’ve lost in the trust fund (and really they haven’t lost bugger all) they’ve gained in other ways.

Original poster

Bambootrees · 12/04/2025 15:30

Is there a good website anyone can recommend so she can look at different type of investments?

OP posts:

Changed18 · 12/04/2025 15:43

www.moneysavingexpert.com/savings-hub/

BeaAndBen · 12/04/2025 16:22

Seriously79 · 12/04/2025 13:51

How do we access sons account. He is 18 soon and I totally forgot about this.

You as parents won’t be able to access it, as it is your son’s money. But he should get a letter soon telling him how much is in it.

To avoid DD going giddy and spending it, we explained long before the letter came that we’d opened CTF account for her to fund her university as far as possible.

Notsuchafattynow · 13/04/2025 15:19

Bambootrees · 12/04/2025 15:30

Is there a good website anyone can recommend so she can look at different type of investments?

Boring Money is a good place to start.

Also, there's similar topics covered in the Money talk boards which I've found useful.

Bryonyberries · 13/04/2025 15:29

I didn’t add anything, I’ve never had enough to save but my daughter got just over £1k. It came just in time as her car broke down and she needed a new one to get to college and work.

Oldraver · 13/04/2025 16:12

I totally ignored DS's, I was totally pissed off with concept as I could if really done with that £250 myself

DS got £600 and is over the moon with it and id putting it towards a car (I am also giving him some towards a car )

Dogsbreath7 · 13/04/2025 18:25

Well it’s on you so the disappointment is with your decisions not governments or life!

We put £50/ month in. Didn’t notice it gone. DD has £20k to kickstart Uni with.

Have you saved for retirement?

JackGrealishsCalves · 13/04/2025 18:46

Bambootrees · 11/04/2025 22:42

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.

We felt the same tbh.
DS was thrilled he had over £500 though going to uni and has left a large chunk of it there to continue to be invested.

GoldOP · 13/04/2025 19:12

Bambootrees · 11/04/2025 22:55

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.

Edited

The voucher we got was for £250 so it’s earned £309, still not great for 18 year tho! I put £25 a month away for each of mine, son turns 18 in December and current projection is £7k, could do with that myself at the moment 😂

Helen1625 · 13/04/2025 19:59

We got the £250 CTF when my daughter was born (now 16). It dawned on me a few years ago that we'd not had a statement from them in ages so I contacted them to ask why. They said they don't send them but as I'd asked for one, they would. The CTF had barely doubled in that time and I noticed that there were fees being taken year on year for managing the account.

I contacted the bank and asked about a junior ISA. They dealt with closing down the CTF and transferring the funds to them.

It'll have grown a bit more by the time she gets it at 18, with interest and with no deductions. We've saved separately for her.

Elzibub · 13/04/2025 20:03

Brunocatmon · 11/04/2025 22:49

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.

We didn’t add anything and ours got £450…..