Child Trust Funds: five tips on what to do with the money

Child Trust Funds: five tips on what to do with the money

Most of the around 55,000 young people turning 18 in September will enjoy an unexpected and worthwhile birthday present: the Child Trust Fund (CTF). This scheme was launched by the government in 2005 and the first funds will be available to spend or re-invest this year.

The average CTF will be worth over £1,000, but many accounts will hold significantly more than that. And while the temptation might be to spend the money on a car, a holiday or to pay off bills, recent research from OneFamily, the largest provider of CTFs, shows that most young adults are inclined to invest the money to build up a future nest egg.

Young people are also likely to look for help on what to do with the money from their parents, grandparents or guardian, so here are five tips on guiding them to make the right decision.

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