More than four million Child Trust Fund accounts have been opened since they were introduced in 2005, new figures released by the Treasury have revealed.
The statistics show that between April 2005 and December 2008, 4.01million Child Trust Funds
have been opened. Of those, 3.07million were opened by parents themselves who had actively chosen an account for their child rather than leaving it to the Government to invest.
Commenting, economic secretary Ian Pearson MP, said: "The introduction of Child Trust Funds is a great achievement that will ensure that every child in our country has their own financial asset when they reach 18.
"These long-term investments
will provide a generation of children with an understanding of and an education in the benefits of saving for the future, while reinforcing the savings habit."
According to The Children's Mutual, the figures show that four million children have been given an opportunity to enter adulthood with a tangible financial asset, "something that both today's 18 year olds and their parents will almost certainly wish they'd had," said David White, chief executive of The Children's Mutual.
"The news is full of stories of the financial demands on young adults. From funding education and training to getting a foot on the housing ladder the requirements are many whilst the resources are all too often few," Mr White added.
The average monthly investment into an account like The Children's Mutual Child Trust Fund
is £24, which, if invested from today and coupled with the Government's kick-start, would total £9,750 on the child's 18th birthday, said Mr White.
And, as financial worries mount, children's financial future is coming to the forefront, he added: "Conversations with our customers show that the current economic gloom is focusing parent's minds and many believe that now is a good time to start actively saving for their children's futures."
Find out more about The Children's Mutual Child Trust Fund »
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