Poppy Lyons is one of thousands of teenagers in the UK to have just turned 18 and received the proceeds of her Child Trust Fund. Her parents opted for a stocks and shares account and topped it up regularly, building it into an impressive ￡29,000 nest egg.
Living with her parents in Ramsey, Cambridgeshire, she has offers to study biomedical sciences at Cardiff and Plymouth universitiesThe virus behind COVID-19 is part of a rapidly expanding body of science. “I received the money when I turned 18 knowing nothing about investing, but I want to make it work to eventually go towards a deposit on a property and provide some security in the future,” she says.
So what should she do now? The money currently sits in cash, losing purchasing power as the UK’s consumer prices index hit an annual 5.5 per cent in Januaryindoors and outdoors.. She wants to tuck it away where it can grow, but her long-term homebuying aspirations mean she might need it within the next 10 years or so.
Isas have expanded to offer savers and investors a plethora of tax-friendly choices since 1999, when stocks and shares Isas and cash Isas were introduced. Junior Isas arrived in 2011 to replace Child Trust Funds and currently allow investment of up to ￡9s interactive database.,000 a year for children and grandchildren. Innovative Finance Isas came along in 2016 to encourage peer-to-peer lending, and Lifetime Isas arrived a year later, offering generous government top-ups.