Government proposals to encourage parents to invest in their offspring's future through a child trust fund (CTF) will help to educate people on the importance of saving, it has been suggested.
Welcoming economic secretary Kitty Ussher's announcement of a government drive to encourage parents to use CTFs, Nationwide director Robin Bailey commented that the move to encourage CTF investment would help promote a culture of saving in the UK.
Recent research by The Children's Mutual found that just under a quarter of CTF accounts have been topped up by parents after the initial investment of their free voucher provided by the government.
Mr Bailey expressed disappointment in the number of parents making additional financial contributions to CTFs, commenting that they provide a tax-efficient savings vehicle for parents to build a financial nest egg for their children.
"Encouraging a culture of saving can make a real difference to their [children's'] lives and by topping up their child trust fund on a regular basis, parents and grandparents can really help to give them a head start in life," he said.
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