Nov 21 2006
Lump sum additional child trust fund payments are predicted to increase this winter as family members add to the funds at Christmas, it has been claimed.
CTF provider The Children's Mutual reported that one-off CTF payments increased by 80 per cent in the first week of January this year.
David White, chief executive of The Children's Mutual, said: "We're expecting to see a flurry of CTF cheques in January as the Xmas factor hits the UK."
While not expecting families to forgo the traditional opening of Christmas presents around a tree, he noted that if a proportion of the money usually spent on presents is invested in the funds, children could save a sizeable amount of money by the time they are 18.
He noted that 2.5 million children in the UK now have a CTF account and reported that the introduction of the fund had increased the debate among families regarding money and saving.
Earlier this year, financial services firm Bradford and Bingley reported that adults expected children to spend 14 per cent of their own savings on Christmas and birthday presents for others.
