Child Savings Still Going Strong
22/10/2008
The UK may be teetering on the edge of a recession, but the latest figures on Child Trust Funds show that parents are committed to child savings.
HM Revenue and Customs (HMRC) has recently released its latest quarterly figures on Child Trust Funds (CTF) and they show that the take-up amongst parents is strong. Nearly three quarters of the vouchers - 72% - were placed into child savings accounts or investments within a year of issue.
David White, Chief Executive of The Children's Mutual said: "Despite the growing pressures on family budgets, we are witnessing an ongoing commitment by parents, grandparents and family members to ensure that Child Trust Funds are being topped up by either ad hoc payments or by a monthly direct debit. Currently the average direct debit being paid into a Child Trust Fund with us stands at £24 per month which maintained over the lifetime of the Child Trust Fund could produce a fund value in the region of £9,750.
"[The] HMRC figures and our own show that the Child Trust Fund is working. It is being used by families to help to provide a future financial springboard for their children, so that when they enter adulthood they may be able to avoid some of the economic nightmares being faced by today's 18-year-olds."
HM Revenue and Customs (HMRC) has recently released its latest quarterly figures on Child Trust Funds (CTF) and they show that the take-up amongst parents is strong. Nearly three quarters of the vouchers - 72% - were placed into child savings accounts or investments within a year of issue.
David White, Chief Executive of The Children's Mutual said: "Despite the growing pressures on family budgets, we are witnessing an ongoing commitment by parents, grandparents and family members to ensure that Child Trust Funds are being topped up by either ad hoc payments or by a monthly direct debit. Currently the average direct debit being paid into a Child Trust Fund with us stands at £24 per month which maintained over the lifetime of the Child Trust Fund could produce a fund value in the region of £9,750.
"[The] HMRC figures and our own show that the Child Trust Fund is working. It is being used by families to help to provide a future financial springboard for their children, so that when they enter adulthood they may be able to avoid some of the economic nightmares being faced by today's 18-year-olds."
