Oct 10 2006
The child trust fund (CTF) scheme introduced by the government last year has resulted in a shift in saving habits in the UK, encouraging a national savings culture, it has been reported.
Family Investment's CTF index found that 39 per cent of parents have entered into other savings plans after setting up their child's CTF, with this figure being even higher at 42 per cent for those parents who set up a stakeholder CTF.
Other figures from the poll were mixed, with 30 per cent of parents believing that CTFs will make their own children more financially aware, but 44 per cent believing it will have no impact.
John Reeve, chief executive of Family Investments, said: "While the scheme is clearly encouraging parents to save, a habit that will be passed onto their children, there is still work to be done to ensure that personal finance education is a priority for parents, both to help themselves and their children in realising the benefits of saving."
The Children's Mutual announced on the first year anniversary of the CTF in April of this year that the fund had been a "catalyst" to an investment and savings culture in the UK.
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