Sweet 16! Child Trust Funds come of age!
From football players of your youth becoming managers, to pop groups of the 90s reforming, there is plenty that can make you feel old – here is a financial one.
This month, the first Child Trust Fund (CTFs) recipient will turn 16 and will be able to manage their account for the first time before accessing it from age 18.
CTFs were launched in 2002 by the then Labour Government, a centrepiece of then chancellor Gordon Brown’s aim to establish a savings habit among children.
Every baby born in the UK between September 2002 and January 2011 received at least ÂŁ250 in the form of a voucher from the government, with ÂŁ500 going to lower income families.
Parents, grandparents and others could then put in up to ÂŁ1,200 a year, and all income and gains were tax-free.
These were scrapped in 2011 by the Conservative and Liberal Democrat coalition government, and replaced with Junior ISAs, which have no state contribution but the same tax-free status on returns.
There may not be as much government support around, but a financial adviser can also be handy in setting up a savings or investment plan for your children. We may even give you a free cup of tea and a biscuit!
The value of an investment and any income from it can fall as well as rise and you may not get back the original amount invested.
