DD's CTF

[twixandanapple]

Bit stuck on how to help my 18 year old manage her money.

She's got a job for her gap year earning about £700 pcm (plus freelance door work every so often) and I recently helped her get access to her CTF which is about £1.6k. She has about £700 in savings and a couple hundred quid in her current account.

DD says she wants to divide her money into long term savings that isn't touched; short term savings for holidays etc and a small amount to invest. (Plus her current account)

I was thinking a long term ISA but I'm not sure what's best for the other bits of money and I'm especially stuck on which banks to go with.

All suggestions are appreciated!

LISA - 25% bonus on what she puts in (up to £4k can be put in each financial year). This is useful for a first home deposit. So it might be good for her long term savings, as for her, long term may really be that long - 3-5 years maybe a bit longer.

Really long term she should look at being in a workplace pension scheme where the employer is making a contribution.

Stocks and Shares ISA can be good but she needs to understand the risks of investing.

Does she like reading books, blogs, listening to podcasts or watching YouTube videos? Depending which of those she uses for information there are different places that she can be directed towards to learn about investing.

Short term emergency fund, just in a current account. The money needs to be accessible.

NS&I Premium Bonds - can be useful for short term savings. No interest but there is a chance of a win. An alternative is a With Notice savings account where a certain amount of notice has to be given to access the money, the longer the notice the higher the interest rate but rates are pretty low.

@nannynick You're a star!

Thanks for these. I'll start looking into them.

She only reads non fiction and listens to (arguably too) many podcasts so I'll recommend she has a look for advice there.

Some good podcasts (UK based)
Meaningful Money
Money To The Masses
In Her Financial Shoes
The Prosperity Project