It is a “legitimate concern” that adolescents turning 18 will not be responsible enough to manage the money in their child trust fund (CTF) accounts, an investments adviser has warned.
A spokesman for F&C Investments advised parents to “consider all the options available” to them when making an investment for their child.
For instance, there are Isas and child benefit schemes that may be more suitable, he said, as well as schemes “where the parent can act as trustees so that there is an element of control over the money to an age of their choice”.
The company also advises parents not to neglect their child’s financial education, as teaching them about money can foster a more mature attitude towards finance.
In related news, accountancy firm PricewaterhouseCoopers recently calculated that regular investment from birth – coupled with inflation and taxes – could make the average CTF worth £26,000 by the time the beneficiary comes of age.
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