Child Trust Funds
If your child was born in the UK between 1 September 2002 and 2 January 2011, they probably have a Child Trust Fund.
Supporting your child as they start managing money
Their first account, their first pay cheque, an unexpected windfall - help them build savings habits that last a lifetime.
The moments that matter
There is no single moment when a child becomes financially independent. It usually happens gradually, as they start making more decisions for themselves. Some moments can make those decisions feel bigger, such as opening a financial product, taking over money that’s been saved for them, or receiving money unexpectedly.
You can use these moments to start simple conversations about choices, responsibility and planning ahead. You do not need to cover everything at once. Start with the moment your child is closest to.
Taking over financial products
This can feel like a big step for a young person.
They may be getting access to money or products that a parent, carer or family member has looked after for them. This could include savings, Premium Bonds, a Junior ISA, a Child Trust Fund or another product opened when they were younger.
They do not need to decide what to do straight away. This can be a useful moment to help them understand what they have, how it works, and what choices they may need to make.
What this moment can help them learn
Taking over a financial product can help your child understand
what it means to manage money in their own name- why someone may have saved for them
- how to check how a product works
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what choices they may have when they take control
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why it can help to pause before using or moving money
Remember, you are not trying to tell them what to do with the money.
You're helping them feel ready to ask questions and make informed decisions.
Start with what they have
Before talking about what they might do next, it can help to look at what they already have.
They might need to understand:
- what the product is called
- who opened or managed it
- whose name it is in
- when they can take control
- whether they can pay money in or take money out
You could start like this:
This money or product is becoming yours to manage.
Let's understand what it is before you decide what to do next.
This helps make the conversation about understanding first, instead of making an immediate decision.
Help them check the basics
When your child is taking over a product, you could help them check:
- when they become responsible for it
- what they can and cannot do with the money
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whether there are any rules, limits or restrictions
- whether they need to update their details
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how they can access statements or product information
- who to contact if something is unclear
They may also need help understanding letters, emails or online account information.
Reading these together can make the process feel less overwhelming.
Practice asking questions
Encourage your child to write down anything they do not understand. For example:
What does this word mean?
Can I take the money out?
What happens if I do nothing?
Do I need to give updated details?
Learning to ask questions is part of learning to manage money.
If they want to spend it all
Your child may feel excited about having access to money. That's completely understandable.
Rather than saying “no” straight away, it may help to slow the decision down.
To keep the conversation supportive, you could suggest:
It is your money, but it is worth taking time before deciding.
Would future you be glad you kept some of it?
Could you give yourself a few days before making a big decision?
Their first salary
Getting paid for the first time can be exciting. It can also bring new responsibilities.
For your child, a first salary may be the first time they have regular money coming in. They may need to think about spending, saving, bills, travel costs, tax, National Insurance or pension contributions.
They do not need to get everything right from the first payday. This moment can help them start building habits that make money easier to manage.
What this moment can help them learn
A first salary can help your child understand:
-
the difference between gross pay and take-home pay
- what happens on a payslip
- how regular income can be planned
- why it can help to keep some money separate
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how small habits can make future decisions easier
Try not to tell them how much to save or spend. Instead, encourage them think about what their pay needs to cover.
Start with payday
Before talking about saving, it can help to talk about what happens when money arrives.
Your child might want to think about:
- what they need to pay for before next payday
- what they want to enjoy now
- whether they have a short-term goal
- whether they want to keep some money for later
- what would happen if an unexpected cost came up
A simple way to start is to ask:
What does this money need to do before you are paid again?
Help them check the basics
When your child starts getting paid, you could help them check:
- how often they will be paid
- what their take-home pay is
- what deductions appear on their payslip
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whether they need to pay for travel, food or work costs
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whether they have regular payments or subscriptions
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where they could keep money they do not want to spend straight away
Make a payday routine
Encourage your child to choose a simple routine for when they get paid.
For example, they could:
- check how much has arrived
- set aside money for regular costs
- move some money away from everyday spending
- check when they are next paid
The idea is to build the habit, not necessarily a strict budget.
If they spend too quickly
Many young people will run out of money sooner than expected at some point.
This can be a learning moment. Especially, if it's reflected on.
You could say:
What made the money go faster than you expected?
What would you do differently next payday?
Is there anything you could separate earlier next time?
The goal is to help them notice patterns, not make them feel ashamed.
Receiving a windfall
Receiving money unexpectedly can feel exciting, surprising or even overwhelming.
Your child might receive money from a gift, inheritance, prize, matured product, or another one-off payment. This can be a useful moment to help them pause, understand their options and think about what the money could help them do.
What this moment can help them learn
Receiving money unexpectedly can help your child understand:
- why it can help to pause before spending
- how emotions can affect money decisions
- how to think about short-term and longer-term needs
- when it may be useful to ask for support
The aim is not to tell them what to do with the money. It is to help them make a considered decision.
Start with taking time
Before looking at products or making plans, it might be helpful to reassure your child that they don’t have to decide immediately.
They might want to think about:
- whether they need any of the money now
- whether there is something they are already saving for
- whether they want to keep some for later
- whether they need more information before deciding
You might want to start by suggesting:
You do not have to decide what to do with this today.
This can help reduce pressure and make space for a better conversation.
Help them check the basics
When your child receives money unexpectedly, you could help them check:
- whether there are any documents or conditions linked to it
- whether the money is already in an account or needs to be claimed
- whether anyone else is involved in managing it
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where they can keep it safely while they decide what to do
If the amount is large, or the situation is complex, they may need support from a financial advisor.
Create a waiting period
If it’s possible, you could suggest taking a few days before making any big decisions.
This gives your child time to move from the excitement of receiving money to thinking about what they actually want it to do.
To encourage them to pause, you could ask your child to think about:
Now - Is there something they need or would enjoy now?
Soon - This could be something they are planning for.
Later - This might be something that could help them in the future.
This can help them avoid seeing the money as something that has to be spent all at once.
Talk about outside pressure
Unexpected money can sometimes attract opinions from friends, family or others.
You could talk about how to respond if someone encourages them to spend it quickly.
For example:
I am taking time to think about it.
I am not deciding yet.
I need to check what I want to do first.
Moving out
Moving out is a major step into independence.
Your child may need to think about rent, deposits, bills, food, travel, furniture, insurance and shared costs. This could be a major increase to their outgoings.
They don’t need to understand everything at once. This moment can help them think about what life outside the family home may cost, and how saving can help them prepare.
What this moment can help them learn
Moving out can help your child understand:
- the difference between one-off and regular costs
- how bills and direct debits work
- why it can help to keep money aside for unexpected costs
- how to talk about money with housemates, landlords or family
The aim is to help them understand the types of costs they may need to plan for.
Start with the real cost
Before talking about products or savings goals, it can help to look at what moving out might involve.
Your child may need money for:
- a deposit
- rent in advance
- moving costs
- furniture or household items
- bills
- food
- travel
- emergency costs
A simple way to start is to ask:
What would you need to pay for before and after you move?
This helps your child see that moving out is not just one cost. It is a change in how they manage money day to day.
Help them check the basics
When your child is thinking about moving out, you could help them check:
- what they would need to pay upfront
- what they would need to pay every month
- which costs would be shared
- what is included in the rent
- when payments would be due
- what insurance might they need
- what would happen if an unexpected bill arrived
- where they could keep money set aside for emergencies
They may also need help understanding tenancy terms, bills or shared responsibilities.
Make a moving-out list
Split possible costs into:
- before moving
- monthly costs
- annual costs
- occasional costs
- emergency costs
This can help your child see what they may need to prepare for.
Talk about shared money
If your child is moving in with others, talk about how shared costs might work.
They may need to think about:
- whose name is on bills
- how housemates will pay each other
- what happens if someone pays late
- how to agree shared purchases
These conversations can feel awkward, but they are part of managing money independently.
How to start a saving habit
As your child starts making more of their own financial decisions, it can be helpful for them to understand why building a good saving habit is important. Even if they don’t have a specific goal.
Help them make the most of it
If your child has just come into some money, have they thought about saving? Our guide to what to do with unexpected money may help.