Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
Other subjects
Original poster

Child Trust Funds...good idea or not??

15 replies

SmileysPeople · 18/02/2007 14:13

This is regarding those child trust funds we were all given for babies born after 2002 (I think?). I never invested mine as I disagreed with it as a good use of money by giving it to everyone.

Anyway it was eventually invested on my/DS's behalf.

So now DH and I have a disagreement about what to do with it. He thinks we should use it to invest money for DS. I think this is a bad idea, as I believe all money in it will become his at age 18 to do with as he wishes.

Am I wrong about this?

AS I don't want to save for years just for him to use the money to support his rock band/buy a motorbike/spend a year surfing or whatever.

I'd rather save in a way that we retain control and can use the money for him but on things that we feel are beneficial e.g. uni, training, house.

Am I wrong on this with regards to the trust fund? And/or am I wrong in principle?

OP posts:
purpleturtle · 18/02/2007 14:15

The trust fund money will all be ds's. So you're not wrong on the trust fund question.

And as to whether you're wrong in principle...

keeping out of that one!

hana · 18/02/2007 14:22

yes but if you've raised him to be sensible with regards to money and not wasting it, he will be prudent with the 'child trust fund' money at 18
we're not putting any into it for that reason and have invested elsewhere for the dds

Crotchety · 18/02/2007 14:22

Where did it end up being invested?

slayerette · 18/02/2007 14:26

We have just left the Child Trust Fund money by itself and are saving elsewhere (an ISA in my name so tax-free)for ds's future. That way we can retain some control - uni if he wants to go, or travelling, or drama school...

knittingfog · 18/02/2007 14:27

On the principle basis I can't help feeling that Gordon Brown was headline grabbing in an attempt to buy votes. If he really wanted to help the future generations he should have invested the money in schools.

Some say that the money will be used by kids to fund university but the same government brought in tuition fee charges which effectively takes it back off them anyway.

As a parent I am positive that lots of trust funds will have absolutely no other funds added to them (possibly because parents need the money for day to day support of their families) and the pot of funds with addedd interest will be gone in a matter of weeks as soon as many 18 year olds get their hands on the money.

juicychops · 18/02/2007 14:29

my ds has the trust fund thing set up for him. When i turned 18 i had no money set aside for me and it would of really come in handy if i did for driving lessons, or a car, or a deposit when i moved out or uni if i had gone.

Its comforting to know that ds will have something to get him on his feet when he's old enough, something which i wasn't lucky enough to have. so as long as i bring him up to be responsible with money i don't see a problem personally but thats my opinion

morocco · 18/02/2007 14:30

great idea and free money for our kids but no way am I adding to it - ds can do that themselves if they want to when they're older. I know what I was like at 18 and I was quite sensible - still frittered money like that away though

Original poster
SmileysPeople · 18/02/2007 14:47

LOL at the idea that if you bring them up to be sensible they will not fritter the money at 18yrs!!! Were you people never 18??

I'm sure some 18yr olds willl use it sensibly and lots of others (with lovely responsible parents) will think that paying for their Gf and them to travel for 2yrs is very sensible.

I predict many annoyed parents of 18yr olds when these funds mature (and the kids don't)

Ours was invested for us, by default, into one of the funds on offer. WE haven't added to it.

WE already save for Uni etc in an ISA. I personally want to retain soem control on the money, and give it for purposes I judge to be worthy.

It's me saving it after all.

OP posts:
purpleturtle · 18/02/2007 14:53

I did invest ours, sorry, dss', so that I decided which fund to put money into. Who knows what the goverment-designated fund would be investing in.

Other money is saved elsewhere. such as it is.

RubyRioja · 18/02/2007 14:59

This reply has been deleted

Message withdrawn at poster's request.

Original poster
SmileysPeople · 18/02/2007 15:05

Never thouht of that Purpleturtle.

Mine was more of a passive protest.

OP posts:
Original poster
SmileysPeople · 18/02/2007 19:57

Bumping, for any alternative perspectives (in case I'm missing something).

OP posts:
TheBlonde · 18/02/2007 20:04

We only invested the Gov voucher and won't be adding to it
I don't want to tie up money for that long or give DS access to a lump sum at 18

Chipstick · 18/02/2007 20:12

I agree that the amount of money invested into CTFs would have been better spent on education but whose to say my actual hildren would benefit?

Like the majority of people we are hard working who give thousands upon thousands to the government every year - we live in a nice area that would never need money pumped into it/regeneration - rarely (fingers crossed) use the NHS and are unlikely to get a state pension by the time we reach that age. So if they want to give my son £246 thats absolutely fine by me. We researched, put the money in a stakeholder with HSBC and the growth is doing really well.

As driving lessons are now averaging £25-£30 per lesson - I think my son will be needing his CTF!!

Ladymuck · 18/02/2007 20:14

I think that the scheme has pretty much backfired. The amounts in it aren't going to be enough to make a significant difference to the quality of life for many 18 year olds, especially if they've been invested as the cash option for that number of years. And I'm not sure that it has stimulated a real savings culture amongst the lower socio-economic groups, though it probably has had a marginal effect for those familes where one child qualifies and older siblings don't, encouraging parents to put aside a similar amount for the older children. I suspect the scheme will run until the 7yo payment becomes due, and then will be abandoned, with a similar impact on familes where the older child will have had the voucher and parents fork out for the younger children.

But I defintely wouldn't let the Government invest any money on ds's behalf.

New posts on this thread. Refresh page