CTF parents commit to long-term savings
03/04/2007
More than 2.6 million child trust fund (CTF) accounts have now been opened by doting parents, the latest figures from HM Revenue & Customs reveal.
This proof that parents are beginning to look far into the future suggests that savings habits have shifted significantly, comments David White, chief executive of The Children's Mutual.
"We've seen double the number of parents committing to save regularly over the long-term for their children," Mr White remarked.
Perhaps more importantly, parents are also contributing larger sums to their children's accounts than previously.
The average monthly payment into children's accounts has increased from £15 before the introduction of CTFs to £24.
Paying in £24 a month, plus the £250 government vouchers at birth and top-up age of seven, could mean savings of £9,750 by the time a child reaches 18, the Children's Mutual calculated.
Such a sum would fund around 40 per cent of the cost of the average wedding, it added.
The Child Trust Fund scheme will be two years old on April 6th.
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