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What are other people doing with their Child Trust Funds?

A Child Trust Fund (CTF) can give you a head start in adult life, whatever your goals may be.

A little saved over a long time can add up to a lot and, when you gain access to your money at 18, what you do with it is up to you.

You could withdraw the full amount of your Child Trust Fund, or you could reinvest it into an adult savings product like a stocks and shares ISA or a Lifetime ISA to really put it to work towards your future.

With so many options available and so many new doors opening up when you turn 18, choosing what to do with your Child Trust Fund investments can feel like a daunting decision.

When making a difficult choice, it's always helpful to know what other people in a similar situation decided to do and their reasons. So, we asked one of our customers, Freya, to tell us about her plans for her Child Trust Fund. Here's what she had to say.

How much do you know about your Child Trust Fund?

Mum has been paying into my Child Trust Fund account every month to build it up for me and over the years it's become a useful nest egg that will help me to start adult life.

Have you been talking to anyone about what to do with your Child Trust Fund?

I’ve been talking to my parents quite a lot recently about money and what my plans are for my Child Trust Fund money. They’re great at giving advice and are really supportive of what I want to do; they’re happy so long as I’m happy, though Mum would prefer that I keep it invested if I can.

She thinks that if I leave it until I’m 21 then I’ll be that much older and at a different point in my life, so I’ll spend it more wisely – which is sensible advice. Dad thinks it would be amazing for me to travel – he wants me to have fun and to enjoy it!

I think that it would be good either way - it’s nice that my Child Trust Fund has given me the opportunity to do something that I might not otherwise have done.

I think they were a really good idea, having that initial bit of money when you turn 18 can really help to start you off in life – especially if you're leaving home. Having some money behind you is definitely a good thing.

It’s also a nice way to mark becoming an adult.

What are your plans for the future?

I have two plans for my future.

The first is to go to university or dance college in London. If I did that then I could probably transfer my job to London, which would help me to finance my way through college. If that worked out then I probably wouldn’t need to touch much of my Child Trust Fund money, so I’d reinvest it for a few more years.

If I didn’t get into university or dance college, I’d take a gap year and reapply for my course for the following year.

I want to travel – I’d love to visit New York for six months – it’s such an exciting place. I imagine it would cost quite a lot so I would use my Child Trust Fund for that.

Please note: OneFamily does not provide investment advice. Whether you’re a glass half full or glass half empty type of person, you should always remember when dealing with stocks and shares that while they can have good potential for returns in the long run their values can fall as well as rise. So, there’s always a chance you could get back less than is paid in.

Junior ISA

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17-year old Freya, a Onefamily Child Trust Fund customer

Seventeen-year-old Freya has a Child Trust Fund with OneFamily that will be maturing at around the same time that she finishes college.

A man holding two children on a walk through a field

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