Apr 21 2008
The credit crunch has encouraged many parents to focus more on saving for children, it has been claimed.
David White, chief executive of the Children's Mutual, is convinced that people tend to cut back on their spending and start planning for their own and their family's financial future when the economy begins to struggle.
When "everything seems fantastic" the natural instinct is to believe it will remain so and as a result saving for children can often become less of a priority but this is not the case at present, according to Mr White.
"In times of negative press around financial things, people actually consider savings much more," he said.
Mr White went on to point out that the Children's Mutual has seen an upturn in 2008 in the number of parents who set up a direct debit when they opened a child trust fund (CTF) on behalf of their son or daughter.
Figures compiled by the Tax Incentivised Savings Association (Tisa) have shown that the average amount being added to CTFs has been increasing so far this year.
