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'Christmas and birthdays' a good time to save for children

25 January 2010

Christmas and birthdays are among the most popular times to save for children, according to the Tax Incentivised Savings Association (TISA).

New figures published by the group indicate that during the quarter ending December 15th, some 265,176 child trust fund (CTF) accounts received a one-off subscription, with more than £136 million lump sum subscriptions made.

The data also indicated that the average amount of this type of contribution was £513.

According to Tony Vine-Lott, director-general of TISA, this figure may be an indication that money given as Christmas or birthday gifts is being set aside in a CTF.

He also advised parents who are keen to set aside money for any offspring born before the CTF scheme began to set up a tax-free individual savings account.

"The benefits of saving and engaging with the financial services sector during childhood should not be underestimated," he concluded.

Figures from TISA represent a total of 73 per cent of all CTF accounts.

Under new plans unveiled by children's secretary Ed Balls earlier this month, young people are set to receive instruction in financial literacy - including saving.

It is thought this type of education will be available up until the child is 16.

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