Apr 7 2008
Money saved on behalf of young Britons through a child trust fund (CTF) can really make a difference to the start of their adult lives, it has been claimed.
According to a report from the Children's Mutual, many parents in the UK are underestimating the desire among younger generations to use the money they receive through a CTF wisely.
In fact, research from the company found that most 18-year-olds would look to save their funds if it amounted to more than £20,000 and many others would use it to pay for their schooling or for a housing deposit.
"You've got to give credit to our teenagers," said David White, chief executive of the Children's Mutual.
"Their parents were brought up in an environment that was all about borrowing and spending but this generation of young people has realised that saving now and spending later is a better approach."
Meanwhile, Miles Bingham, head of saving at Family Investments, claimed recently that CTFs that focus on ethical investment are proving increasingly popular with British parents.
