Apr 5 2007
The benefits of compounded regular saving mean that it is never too late to start building up a financial nest egg for a child, even if they are not eligible for a child trust fund (CTF), it has been reported.
Asset management firm JPMorgan notes that millions of children born before the start of September 2002 are not eligible for the government's CTF scheme, but adds that their parents can invest equivalent amounts in a stock market-based investment trust.
James Saunders Watson, head of investment trusts sales and marketing at the firm, said: "The important thing for parents to remember is that it's never too late to start saving regularly, regardless of whether their children have had a bonus gift with CTFs."
He added that careful financial planning for children can grant them increased financial options when they grow up.
Last September, Nationwide Building Society urged the government to introduce incentives to encourage saving by children that are ineligible for the CTF.
