Grandparent CTF top-ups could see children £14,400 richer

Child Trust Fund (CTF) Week is a chance to bring ‘money’ back to the dinner table, says The Children’s Mutual.

With just days until the Government’s first Child Trust Fund (CTF) Week launches (15 – 20 January), The Children’s Mutual is urging families to bring the ‘taboo’ subject of money to the dinner table.

More than 85% of grandparents would be prepared to invest in their grandchildren’s futures, according to research from The Children’s Mutual but more than half of parents aren't comfortable asking grandparents for help (55%), with more than a third (35%) saying they feel guilty about asking them to contribute to their grandchild’s financial future.

Its figures show that children whose grandparents top-up their CTF could be £14,400 better off in 18 years’ time than children who receive top-ups from parents alone; a significant incentive for families to start talking.

David White, Chief Executive of The Children’s Mutual, urged families to start talking more candidly about money to give children the brightest financial future. He said that many grandparents wanted to help their grandchildren out financially and that if parents and wider family pooled their resources the end result could be significant.

Mr White said: “Money continues to be a taboo subject around the family dinner table and as a result, grandchildren stand to miss out on money for their future simply because their parents and grandparents are too embarrassed to discuss the subject.

“We’re urging families to use the Government’s Child Trust Fund Week as an opportunity to bring the subject of money back to the dinner table. While £20 a month from parents could mean a lump sum of £8,300 for a child in 18 years’ time, the same contribution from both sets of grandparents could mean £22,700 – which could make a huge difference to a child’s future.”

Mr White added: “We’re already seeing a wider interest in the CTF. In the weeks since Christmas the number of ad hoc cheque contributions we’ve received has increased by 300%, showing that extended family and friends want to be involved in saving for children. We hope that CTF Week will help to boost this interest even further and transform these ad hoc top-ups into small, sustained contributions that could make a big difference in 18 years’ time.”