Planning your finances for your children's future

Saving For Children is a site dedicated to helping you learn about how to give you and your children the best financial head start in life. We provide information and free brochures on many aspects of child savings, from the Government's Child Trust Fund scheme, to Saving and Investment Products , School Fee Plans and Inheritance Tax Planning.

With the rising cost of education, it is becoming increasingly important for children to have savings to fall back on. The earlier you start saving, the better placed you and your child will be for the future.

Expensive Milestones School fees: £87,000 to £195,000 University education: £7,011 per year Wedding: £14,000 First home: £191,293 Sources: The London magazine, Independent School Council, Halifax, Confetti.com, Land Registry.

The Child Trust Fund

Child Trust Fund	Stakeholder	Minimum Contribution	Charges	Features
	Yes	£10	1.5% p.a.	Easy to apply online	Apply
	No	£25	0.5% to 1.25%	Choice of fund investment	Apply
	Yes	£10	1.5% p.a.	Active fund management	Apply
	Yes	£5	1.5% p.a.	Easy to Apply	Apply
	Yes	£10	1.5% p.a.	Long Track Record
	No	£10	£12.50 per trade	Flexibility of investments

The government launched Child Trust Funds in April 2005. They're designed to help children learn about money, form the basis of a nest egg and to encourage parents to invest for their child's future. Parents of every child born on or after 1 September 2002 will receive a voucher worth £250. This rises to £500 for families that qualify for full Child Tax Credit. A further £250 will be paid to every child when they become seven years of age. The money is there to be invested on a child's behalf in a special fund until he or she reaches the age of 18. In addition, parents, relatives and friends will be able to contribute a further £1,200 a year into the fund, which will roll-up free of tax until maturity.

For more information on the Child Trust Fund click here.

Making the right investment choice − factors to consider

When choosing suitable savings plans or investments for your child, many of the same considerations apply as for adult investors.

  •Timescale − find out if the investment is suitable for the timescale you require, short term or long term.
  •Accessibility − if you think the money may be needed at short notice, make sure there are no withdrawal penalties.
  •Risk − Depending on your attitude to risk and the product you chose you may get back less than the amount you originally invested.
  •Charges − even if you are saving only a modest amount, it is important to ensure that you are not paying excessive charges.

News on Saving for Children

Many thanks to F&C Management Ltd, Helen Pridham and Sarah Modlock for their contributions to savingforchildren.co.uk