Kid’s aspirations are becoming more grown up…shame their savings returns aren’t

What did you want to be when you grew up? A fireman, a ballerina, an astronaut?

Left: You’re fired: After some pitiful returns, Alan Junior decided to sack his child trust fund manager

It’s a question that we were all asked at some stage of our childhood, although if you are anything like me, things may not have gone exactly to plan ever since. I seem to recall a crazy notion that I wanted to be an archaeologist. Although I’ve no real recollection where this idea stemmed from, I have always suspected it was a combination of an unhealthy appetite for digging holes in my parent’s back garden and an obsession with Indiana Jones!

However, judging by recent research from The Children’s Mutual, today’s kids are far more serious in terms of their career aspirations. Its survey of five and six year olds found that teacher, doctor and vet were the most popular career choices. With the exception of becoming a TV/cartoon character (unfortunately the survey didn’t specify whether we are talking Superman or SpongeBob SquarePants here), the list of top ten career aspirations appears to be pretty sensible.

The research makes the sound point that achieving these aspirations will not come cheap. Six of the top ten career choices all require higher education and training, leaving parents to dig deep into their pockets in order to help their children achieve their aspirations. According to the report the cost of a three-year degree course is currently £42,000, but could rise to over £56,000 by the time these youngsters are ready for university.

Many parents with children born on or after 1 September 2002 will be pinning their hopes on the Government’s child trust fund scheme producing a significant nest egg. Sadly, the returns so far have been less than impressive. Four years since the scheme was launched, parents are understandably angry that the average stakeholder child trust fund (the Government’s preferred option) is worth less than the total contributions paid in. It is also easily surpassed by the average cash child trust fund even though interest rates have been falling!

However, there is hope on the horizon, with signs that the recent stock market rally could finally boost returns. Since the beginning of the new tax year the average stakeholder child trust fund account has increased by 8% suggesting that it could yet be worth enough for more than a round of drinks and a packet of peanuts when the first accounts mature in 2020!

Even so, parents should review the performance of their stakeholder child trust fund on a regular basis to ensure that it is delivering the goods. Similarly, if you have opted for the safety of a cash child trust fund instead, check out whether you are still getting the best interest rate on the market.

In the meantime, it would appear that some children are already one step ahead of the game. Rather than relying on their child trust fund, an increasing number have decided to head for one of the few occupations where the streets are paved with gold and further education is unlikely to matter.

Yes, you guessed it; becoming a professional footballer was the biggest mover in the list of children’s aspirations; rising three places from seventh to fourth. Now that’s what I call thinking on your feet!

Richard Eagling, Editor, Investment Life & Pensions Moneyfacts