Case & Management Information
- Claims
- Business/Commercial
- Commercial Disputes
- Debt Recovery
- Employment
- Family/Divorce
- Lender Services
- Property Commercial
- Property Residential
- Tax Returns/Planning
- Wills/Trusts/Estates
Bookmarks
Trust money 'could go to waste'
23/01/2008
Money in child trust funds (CTFs) set up by solicitors on the birth of a child could go to waste if children in Belfast and Northern Ireland are not educated about how to control their cash, experts have warned.
By the time children in Belfast and Northern Ireland turn 16-years-old, if they are not financially aware, all the money that has been saved for them by parents setting up a CTF through their solicitors, risks being spent in a spree.
Lisanne Mealing, managing director of MDM Associates, recommended that parents in Belfast and Northern Ireland should educate their children on finances at a young age - and a CTF would be one way of doing this.
"I think the first tip would be to open up some kind of bank account for the child - as early an age as possible - and to perhaps put presents from grandparents…into the account and then showing [the child] the interest," Ms Mealing said.
"At 16 what happens is the statements start to come direct to them, and at 18 they can access the money," she continued.
"So if you haven't started working with them at an early enough age, they could be blinded - [they could think]: 'Wow, it’s the first time I've ever actually had a big lump of money. I might just want to go and blow this.'
"Whereas if you've started early enough with them, and you've given them control of the money at an early enough age - [you can say]: 'You can go and draw your allowance out, but it's up to you to manage that money and when it's gone, it's gone'," she added.
While solicitors can help to give children a good start in life by setting up a CTF, it is down to the parents to make their children good economists.
Contact us for legal advice
By the time children in Belfast and Northern Ireland turn 16-years-old, if they are not financially aware, all the money that has been saved for them by parents setting up a CTF through their solicitors, risks being spent in a spree.
Lisanne Mealing, managing director of MDM Associates, recommended that parents in Belfast and Northern Ireland should educate their children on finances at a young age - and a CTF would be one way of doing this.
"I think the first tip would be to open up some kind of bank account for the child - as early an age as possible - and to perhaps put presents from grandparents…into the account and then showing [the child] the interest," Ms Mealing said.
"At 16 what happens is the statements start to come direct to them, and at 18 they can access the money," she continued.
"So if you haven't started working with them at an early enough age, they could be blinded - [they could think]: 'Wow, it’s the first time I've ever actually had a big lump of money. I might just want to go and blow this.'
"Whereas if you've started early enough with them, and you've given them control of the money at an early enough age - [you can say]: 'You can go and draw your allowance out, but it's up to you to manage that money and when it's gone, it's gone'," she added.
While solicitors can help to give children a good start in life by setting up a CTF, it is down to the parents to make their children good economists.
Contact us for legal advice
