I’M USING MY £24,000 CHILD TRUST FUND TO PAY FOR UNIVERSITY AND AVOID HIGH STUDENT DEBT

When Freya Newman hears her fellow university students talking about trying to survive off their student loans and about money struggles, she feels incredibly lucky.

The 19-year-old, who is in her second year of studying English and History at the University of Lincoln, grew up knowing her family had been putting money away for her future since she was born.

Freya, who is from Brighton, told The i Paper that her mum, who is an accountant, and both sets of grandparents paid into a Child Trust Fund for her since she was born to give her a financial boost when she was older.

Her family paid around £30 to £80 a month into the fund as she grew up, and as it was invested in stocks and shares, by the time she reached 18 and was able to access it, it had grown to around £24,000.

Freya is now using the money as sensibly as she can to get her through university without accruing a huge amount of debt, as well as making provisions to save towards her first home.

“I decided to split the money so it could support me both now and in the future,” explained Freya. “I had always known about the fund because my mum talked about it when I was younger, which helped me understand how important it was.

“When the time came, I wanted to use the money carefully and I trusted my mum to guide me in making the right decisions.”

Child Trust Funds are tax-free, long-term savings accounts for children born in the UK between 1 September, 2002, and 2 January, 2011. The Government provided an initial contribution of £250 to £500 per child and the money could only be accessed once the child turned 18.

While the scheme closed to new applicants in 2011, existing accounts remain active and can either be managed or transferred to a junior ISA.

Freya transferred £11,000 into an ISA and £4,000 into a lifetime ISA (LISA) – both of which are invested in stocks and shares. She then took the rest out to help her financially while she is studying at university.

Since opening it, her LISA has already increased from £4,000 to £6,000 due to the £1,000 government bonus and around another £1,000 in investment growth.

Freya said: “Knowing those savings are there and understanding how they will help me in the future makes me feel more confident about managing my finances. I know some of my friends are worried about money, so I feel very lucky to have had that support.”

Freya, who wants to study a PGCE after her degree so she can become a primary school teacher, says that while she has taken out student loans to cover her tuition fees, she has not applied for maintenance loans as she is using some of her Child Trust Fund money instead, so that she will not be saddled with as much debt once she leaves university.

“I think Child Trust Funds were a really good idea,” she said. “Having some financial security when you first leave home can make a huge difference. If the scheme or something similar came back, I think it would really help young people to get into the habit of saving.

“I also think financial education is important, so people know how to make the most out of their money, rather than spending it all at once. I’ve always been a saver, even when I was younger, but managing my Child Trust Fund has made me even more confident. It has shown me the importance of financial security and how to plan for the future.

“Once I finish university, I’m planning to use the savings in my ISA to buy a car or help me move somewhere new. I’m hoping to keep saving into my lifetime ISA over the next 10 years or so, with the aim of eventually buying a home.

“I didn’t know much about lifetime ISAs before, but now I think they are a great option, especially with the 25 per cent bonus. It really does feel like free money.”

Freya added: “I feel very privileged and lucky to have had the support from my family as my mum and both sets of grandparents put aside this money for me and my sister in our Child Trust Funds and it has made my university experience a lot easier than that of some of my friends.

“Having the family dynamic I did encouraged me to save, so I saved up my pocket money, which means I have money for groceries and other things at university. My family is great and I feel very grateful to them for giving me this financial boost.”

Jim Islam, CEO of OneFamily, where Freya’s Child Trust Fund was held, said: “Freya’s story shows exactly how saving throughout childhood can make a significant difference to a young person’s life. Child Trust Funds were created to give every young person a financial boost when they turned 18 and we’re now seeing the positive impact of that.

“Young people today face a range of challenges, from the cost of living to the difficulty of getting onto the property ladder. Having a savings pot ready when they begin adulthood can open doors – whether that’s supporting further study, learning to drive or saving towards a first home.

“But these accounts offer more than just the money. Growing up with a dedicated savings pot gives young people real‑world experience of long‑term saving and investing. It strengthens their understanding of how to manage their money and builds financial confidence.

“Freya’s story is a fantastic example of that in action. Her Child Trust Fund is helping her with the costs of university today while also laying the groundwork for her future financial security – exactly what these accounts were designed to do.”

2026-04-07T05:34:04Z