Apr 27 2007
Children can bring immeasurable joy to the world, but as those with their own kids are also aware, the pleasure they bring doesn't come cheap, with the cost of nappies and schooling being followed up by that all important deposit on a first home all too soon.
Early on in the month, it was reported that in an age of rising house prices and rising university fees, today's children grow up expecting their parents to give a financial helping hand, with research from the Children's Mutual showing that three in five youngsters believe their parents will help them on to the property ladder.
But the kids could be in for a rude awakening, as Scottish Widows revealed that although over a third of graduates can't afford a first house without financial help, the number of parents expecting to be paid back when lending money to their children has doubled over the last ten years.
The occasionally tricky problem of borrowing a lump sum from the bank of mum and dad can by sidestepped if parents start putting away money regularly in a child trust fund (CTF), with the government reporting that over 2.6 million of the accounts have been opened since their introduction.
Parents seem to understand the opportunities available with the CTF, with another 49,000 accounts opened in the first three months of the year. The Building Societies Association reported that 73 per cent of parents given the choice opted for a cash CTF, bringing the total balances in this type of account to £26.1 million.
Not everyone seems to be in favour of the CTF though, and the Liberal Democrats came in for stick from a policy research group which described their opposition to the funds as at odds with the traditional values of liberal politicians - and for no good reason too.
Those parents who want to combine giving their child financial support with their moral principles and environmental concerns were told this month that, contrary to popular belief, it may not have to cost them a penny, with F&C Asset Management reporting a lack of market evidence that ethical funds perform less well than their standard alternatives.
