Record number of parents invest their children’s CTF

The Children’s Mutual has welcomed the latest Child Trust Fund (CTF) figures, released by HM Revenue & Customs (HMRC), which show that more than 2.6 million CTF accounts are now open.

David White, Chief Executive of The Children’s Mutual, said the latest figures, which come just ahead of the CTF’s second birthday on April 6, were fantastic news for the nation’s children and point towards a bright financial future for them.

“These latest figures clearly show the beginning of a significant shift in the way this nation is thinking about saving for the future. This is brilliant news for future generations. Family purse strings are under more pressure than ever with many parents being expected to pay for higher education and help their children onto the property ladder. The CTF could mean that most teenagers in years to come will be better prepared for their financial future.

“Particularly encouraging is the fact that we’ve seen double the number of parents committing to save regularly over the long-term for their children, and many parents – and the wider family – are also contributing lump sums by cheque. The average monthly payment has increased by 50% from £151 pre-CTF to £24, which means that, allowing for an initial government voucher of £250, and a further £250 top up at age seven, a child could receive a lump sum of around £9,7501 when they reach 18. This could contribute around 40% of the cost of the average wedding, estimated at £24,7002, or 35% of the deposit for a first home3.

“Even more important is that four out of five families have a stakeholder or a share-based non-stakeholder CTF account for their children. We urge every family to seriously consider the implications of their CTF account choice for their child over the longer term,” Mr White said.