Children's Saving Schemes a gift that could last a lifetime

Christmas is just around the corner, and as parents and relatives look for inspiration, they might want to consider including a gift which will last years after the festive period is over (alongside the usual, more instantly gratifying presents and treats).

Statistics from the Association of Investment Companies (AIC) show that a lump sum investment of £100 in the average investment company over 21 years would be worth £556, which most ‘twenty somethings' would find extremely useful.  The same amount (£100) invested once each year over 21 years would be worth £4,967, illustrating how even relatively small sums of money tucked away can add up over time.

Annabel Brodie-Smith, Communications Director, AIC said: "Of course parents want to make sure their children have the perfect Christmas full of toys and presents they have eagerly been waiting for.  But for parents looking to also take a more long-term view, an investment company has the potential to make a real difference to your child's financial future.  The figures illustrate that small investments add up over the longer-term, and can be a useful way of putting cash received from relatives and friends to good use.

"Any investment company can be used for investing for a child via a bare trust or designated account and there are a wide range of investment companies available that cover a variety of sectors, countries and risk profiles.  However, there are a number of designated children's savings schemes and Child Trust Funds which are a convenient and cost effective way to invest on behalf of a child, with minimum regular savings starting at £25 per month or £50 lump sum."

For a saving for children factsheet and for details on investment company children's savings schemes, visit theaic.co.uk.