More parents opened Child Trust Funds (CTFs) in January than any other month of 2007, according to new research.

Engage Mutual found that 12 per cent of the year's total funds were started at the start of the year.

A spokesperson for the CTF provider Karl Elliot, said that many people chose this time of year because they were sorting out their general finances.

"However, we really encourage parents to invest little and often for their child for the long-term, not just at the beginning of the year," he added.

As of September 2002, all CTFs are automatically given £250 deposit by the government.

Mr Elliot reported that a child whose parents contribute £10 a month and an additional £250 at the age of seven, will have a total of £4,130 by the time they reach 18.

According to LV=, the average cost of raising a child to the age of 21 is £186,000.

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