Do You Have Savings Accounts for ALL of Your Children?
Those of you who have read this blog for years might know that I am the proud father to two young boys aged 5 and 6 – with the eldest turning 7 very soon. When I was looking at the savings arrangements I had in place for them the other day, I was reminded about a little financial boost my wife and I received when my eldest son was born.
Receiving Our £250 Child Trust Fund Voucher
When he arrived back in 2009, we received a £250 investment voucher for our boy which, at the time, was only allowed to be invested into a Child Trust Fund which my eldest would then be able to access when he turned 18. As parents, we did have to decide which fund we would invest the money in and, if I remember rightly, many of them carried varying degrees of investment risk. The idea was that over the years the fund would grow in value, so that our child would have a lump sum to do what he pleased with when he reached adulthood.
Our Youngest Boy Wasn’t so Fortunate
By the time our youngest boy was born in 2011, the UK economy was in a real old mess and austerity measures meant that the £250 CTF (Child Trust Fund) voucher scheme was scrapped completely by the government and CTF’s were subsequently replaced by Junior ISAs. Because of this, our youngest boy did not receive a £250 boost to his investment pot. Parents were not forced to set up a Junior ISA, this is something they had to do themselves at a later date but I repeat, they were not forced to do so.
Could You Be Heading for a Family Savings Feud?
The situation outlined above got me to thinking recently that there must be a lot of families out there who also only received a £250 Child Trust Fund voucher for one or more of their children, but perhaps not for all. This could also mean that some children within a family might well have some sort of savings account in place in the form of a CTF, but perhaps their parents didn’t get around to setting up a junior ISA for their other children? We all know how life tends to take over and these things can sometimes get put on the back burner. If this is the case, then I wouldn’t want to be around when all of these kids come of age and some are being handed financial lump sums from their Child Trust Fund accounts when they mature, while others receive nothing at all!
It’s Not Too Late to Even Things Up!
So, if you want to avoid seeing the disappointment on your kids faces when they find out that Jimmy got a mini fortune when he turned 18 but that there is no such financial windfall in store for them, then you may want to set up a junior ISA for your other kids too, so that they all have the same financial leg up to look forward to when they turn 18, rather than just 1 or 2 of them.