Father Christmas to top up Child Trust Fund accounts
21 November 2006
This Christmas could be a bumper year for Child Trust Fund (CTF) children, according to CTF expert The Children’s Mutual.
Last Christmas CTF lump sum payments were up 80 per cent in the first week of January, as children across the UK received cash or cheques for their future in Christmas stockings and under the tree.
The average child receives Christmas presents worth more than £330 according to research from The Children’s Mutual. Its calculations show that if just 10 per cent of this is saved into a CTF account each year the child could benefit from more than £2,000 when they reach 18.
David White, Chief Executive of The Children’s Mutual, said that the CTF’s introduction had been a catalyst for parents to talk about money with grandparents and wider friends and family.
Mr White said: “We’re expecting to see a flurry of CTF cheques in January as the Xmas factor hits the UK. More than 2.5 million children now have a Child Trust Fund account and we think that chocolate coins won’t be the only money they receive this Christmas.
“The CTF has been a fantastic catalyst to get families talking about children’s futures and giving a Christmas present that lasts long after the tree has been taken down and the turkey eaten. We don’t expect families to give up sitting around the tree and ripping open the wrapping paper but if just a small amount of present spend is saved into a CTF account the child could see a significant lump sum when they reach adulthood.”
The Children’s Mutual’s research also shows that, according to the parents surveyed, 41 per cent of Christmas toys and gifts are often broken by March, and it is urging families to think about giving a present that lasts for longer.
It’s research shows:
The average child receives 10 presents in addition to those from their parents;
The average present spend is £18.50;
Last year the UK’s ‘broken toy box’, post Christmas, was worth a staggering £870 million;
75 per cent of parents say grandparents are the most generous present givers.
