More than three-quarters of parents who are investing in a Child Trust Fund (CTF) are doing so in order to meet the future costs of sending their child to university, research from Abbey has revealed.
Seventy-nine per cent of the parents surveyed by Abbey said that the main reason for contributing to the CTF was to help their son or daughter get by at university.
The second most popular motive was to provide a deposit for their child's first property (72 per cent), whilst almost half (48 per cent) the parents interviewed wanted to buck their child's entrepreneurial spirit by using the money to help them start a business.
According to government statistics, 1.2 million CTF vouchers have yet to be invested. Of those who are investing, the average parental contribution is estimated to be £325 per year.
Abbey has more than 77,000 accounts open, adding up to a 15 per cent share of the market. It offers both cash and stakeholder CTFs.Click here to find out more about children's investments.
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