The number of Child Trust Funds opened in the UK has topped four million, the latest statistics form HM Revenue and Customs have revealed.
And the fact that so many Child Trust Funds have now been opened, is a sign that parents are committed to saving for their children's futures, CTF provider The Children's Mutual has claimed.
Commenting, David White, chief executive at The Children's Mutual said: "These latest figures show that the Child Trust Fund generation is growing steadily and, unlike any generation before them, in 11 years' time the first CTF recipients will reach adulthood with greater financial knowledge and an important financial head start."
The average amount saved each month by The Children's Mutual Child Trust Fund customers is £24, which over 18 years could produce a fund of around £10,000.
In the last year, The Children's Mutual has experienced a boom in the number of CTFs opened, despite the current economic climate. Mr White adds: "It is now more important than ever during these challenging economic times, that parents take the time to choose where to open a CTF and start saving towards their child's future.
"And now that parents no longer have to hand over a CTF voucher when opening a CTF, it's even easier and faster for them to set up their child's account. The involvement of families is very important and even grandparents, aunties, uncles and family friends can save together to top up the CTF to the maximum amount of £100 a month."
Meanwhile, the Tax Incentivised Saving Association (TISA) has found that the average lump sum subscription into Child Trust Funds has increased to £525, up from £516 last quarter.
Commenting, TISA chairman John Brasington said: "It seems that the message is getting through that family and friends can contribute to a CTF as well as the parents.
"Although it's more favourable for many people to commit to regular direct debit savings, given the financial uncertainties facing many families we need to continue to encourage one-off contributions at a birthday and Christmas to ensure CTFs are as well funded as possible."
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