Children who are too old for Child Trust Funds (CTFs) are benefiting from a growing desire to save amongst UK parents.
Barclays found that 46 per cent of UK parents have been encouraged to save for their children’s future through the introduction of CTFs.Furthermore, 57 per cent said that they are thinking about putting aside as much as £50 a month for their youngsters.
The bank said that, with over half of CTF vouchers being cashed in by parents, an additional £25.6 million is being saved for children compared to before April. Many parents are also choosing to save for their older children as well, adding £250 in a similar account to ensure older siblings are treated fairly.
Stephen Ingledew, director of Barclays financial planning, said: “The Child Trust Fund scheme isn’t just about creating a nest egg for one child in the family, but should extend to raising awareness of the need to save as much as is feasible for all children, as well as teach them the benefits of saving over spending.”
He added that parents were adopting the message and starting to put away cash for their children’s future, which he hoped will “create future generations of savers”.
CTFs were established in April of this year for every child born on or after September 1st 2002, with the government awarding every child vouchers of £250.
© Adfero Ltd