Don’t let your teenager miss out on a pot of money!

Millions of teenagers are set to benefit for the first time from money in their Child Trust Funds (CTFs) that has been waiting for them since they were young children.

If your child was born between 1st September 2002 and 2nd January 2011 and you, or your partner, claimed Child Benefit, you may have received a voucher to deposit in a Child Trust Fund (CTF) account which are run by CTF providers (financial services firms).

Since then, using these vouchers, parents or guardians have set up roughly 4.5 million accounts and, where they didn’t or weren’t able to, HMRC set up 1.8 million accounts.

What happens when your child finds their Child Trust Fund account?

When your child is 16, they can choose to manage their account themselves or leave you to continue managing it, but they cannot withdraw the money.

When your child is 18, the CTF account matures and they’re able to withdraw money from the account or move it to a different account.

How to help your child find their Child Trust Fund

HMRC has created a simple online tool to help you and your child find out where their account is held. To use this tool, your child will need their National Insurance number and a Government Gateway user ID, which is easy to set up.

If you’re unable to access the online tool, HMRC will provide you with alternative, non-digital routes to finding a CTF provider.

HMRC will send details of the CTF provider by post within three weeks of receiving the request.

How to help your child find their National Insurance number

Your child will normally be sent a National Insurance (NI) number just before their 16th birthday. They’ll also need their NI when they start work, apply for a driving license, or apply for a student loan.

If they lose, or want to provide proof of their NI number, your child can request it by

• using HMRC’s webchat
• filling in form CA5403on-screen, then printing and posting it to HMRC
• using the free HMRC app
• calling the National Insurance number helpline

How to help your child create a government Gateway user ID

Your child will need their email address and a mobile number to set up a Government Gateway account. Once the account is set up, they will get an email confirmation with their 12-digit user ID. The Government Gateway account is useful to have if they want to do things like apply for a passport or drivers’ licence in future.

How to help your child save

Teaching your child to manage money is a vital life lesson. The accounts were set up to encourage positive financial habits and a saving culture among the young account holders. HMRC is working with the Money and Pension Service (MaPS) and the CTF providers to offer beginners’ guides on how to manage and invest money.

Case study

Jake is 17 years old. His parents received a £268 voucher when he was born and set up a CTF for him. They started paying £20 a month into the account and gradually increased payments to £75 per month. Just after his 16^th birthday, Jake received a letter from his CTF provider asking him if he would like to take ownership of his CTF account, but he chose to let his parents continue managing it till he turns 18. He now has £4560 in his CTF account.

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