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Trick yourself into saving

Your Child Trust Fund has been growing for years. How can you keep growing your savings?

How long would it take you to save up the value of your Child Trust Fund?

It's easy to think of your Child Trust Fund as "free money", but it's not helpful to think of it in this way. Money is money. The same money you work for, the same money your family work for, and may have even deposited in your Child Trust Fund.

How long would it take you to save up the value of your Child Trust Fund? Use our savings calculator to work out how long it would take you to build up this money based on your current savings habits.

Does it make you feel any differently about it?

Saving isn't easy

If you don’t pay attention to your spending it can be almost impossible to save.

There's always a chance to squirrel away something for the future, even if it's just a little, and these savings can add up to something big over the long term. Something that might help you buy your first car, buy your first home or help you through university.

How can you make sure you save money each and every month?

Creating a budget

In order to work out where your savings can be made, you need to understand:

Essential expenses

What are your essential expenses – things like rent, food and transport costs.

Where the rest of your money goes

Understanding what else you've been spending your money on - such as shopping and subscriptions.

The first one is relatively easy, just add together all those essential expenses. The second one may require you to track your spending. There are some smartphone apps that can help you do this, but a spreadsheet or a notepad will do.

Top tip

Download your bank statement and add in any cash payments you may have made. Try to tag them by the type of expense, e.g. travel, entertainment, leisure. You need to include everything to get an accurate view of your spending.

Compare whatever income you receive with your spending. Are you saving anything? Once you know this you can start to look at those non-essential expenses and identify opportunities to save.

Identifying the savings

How much you can save depends on your lifestyle, and what you’re willing to compromise on. Sometimes we can be unaware of how much money we spend on unnecessary or overpriced things. Maybe it’s taxis, takeaways or subscription services.

How much do you spend on coffee per week? It might not seem like much but when you do the maths, the potential savings can soon mount up.

Look at the table below to see how making your own coffee, preparing your own lunch, cutting back on takeaways and cancelling subscription services could save you almost £1,800 in a year.

Expenses Weekly Monthly Yearly
Coffee £5.56 - £289.12
Soft drinks £5.74 - £298.48
Takeaways £9 - £468
Lunches £9.09 - £472.68
Netflix - £9.99 £119.88
Spotify - £9.99 £119.88
Total £1,768.04

Savings calculator

Once you’ve worked out how much you can afford to save each month, use our calculator to work out how long it would take you to save up the value of your Child Trust Fund.

What to do with your savings

The best thing to do with your savings depends on your circumstances, your attitude towards risk and what you're hoping to achieve.

Your Child Trust Fund has been invested for a long time now. It’s important to think carefully about what you'd like to do with it.

If you're saving it for a rainy day it might make sense to put it into a cash bank account or cash ISA where you can access it easily. If you're looking at saving for a long term goal then you might consider investing in stocks and shares, as it provides greater potential for growth than cash savings over the long term, with the risk that the value of your investment can fall as well as rise.

Whatever you decide to do with your money it’s a good idea to speak with your parents, guardians or other trusted adults about it. We have a range of investment products that can help you keep your money invested for the future, whatever your goals may be.

Ready to invest for your future?

Find out more about investing all or part of your Child Trust Fund in climate-friendly stocks and shares with our Lifetime ISA or Stocks and Shares ISA

Find out more

A jar full of pennies, tipped over with some spilling out.

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