CTF gives children potential for improved financial future

HM Revenue and Customs (HMRC) quarterly Child Trust Fund (CTF) figures released today highlight the potential for a brighter financial future for our children according to leading CTF Provider, The Children's Mutual.

David White, Chief Executive of The Children's Mutual said: "This latest report shows that over four million children aged up to six and a quarter are now in possession of a Child Trust Fund. This gives each of these four million an opportunity to enter adulthood with a tangible financial asset, something that both today's 18 year olds and their parents will almost certainly wish they'd had.'

‘The news is full of stories of the financial demands on young adults. From funding education and training to getting a foot on the housing ladder the requirements are many whilst the resources are all too often few. We are urging families not to miss out on the benefits of the CTF in helping to meet these needs in the future. Where families are saving in our CTF accounts the average is £24 a month, add in the Government kick-start and you are potentially looking at a fund of £9,750 at 18. Indeed if the CTF had started 18 years ago and £24 a month had been invested, today's 18 year olds would have the benefit of a fund worth £10,318 and that would be making a real difference in these difficult economic times.'

Mr White continued: ‘Conversations with our customers show that the current economic gloom is focusing parent's minds and many believe that now is a good time to start actively saving for their children's futures. This is supported by our own business experience - in the last year we've seen a significant increase in the number of CTF's being opened with us (a 16% increase on 2007) and in the last month we have witnessed a record number of parents investing their children's Christmas money into their CTF accounts.'

The CTF is well placed to assist families in planning their children's financial future, especially at these difficult times as it allows any family member or friend to contribute. In this way ensuring that through a group effort of ‘little and often' children can maximise the potential future growth of their fund. For example if parents and both sets of grandparents each contribute £10 per month into a child's CTF, they could create a pot of nearly £12,000 when the child reaches 18.