Aug 30 2007
The first generation of young Britons to have a child trust fund (CTF) opened in their name are set to reach five years old and head off to school.
As the fifth anniversary of the introduction of CTFs approaches, the Nationwide Building Society has called on the government to do more to encourage parents to contribute to the funds opened on behalf of their children.
Nationwide insists that CTFs are a good way to ensure young Britons are given a good financial start to their adult lives, but notes that around 60 per cent of parents have opted not to add to their child's fund.
"Just by saving even the smallest amount, parents, family and friends can ensure that every eligible child, when they turn 18, will have a substantial amount of money saved," said Matthew Carter, Nationwide's savings director.
"Encouraging a culture of saving in children can make a real difference to their lives and by topping up their CTF on a regular basis, parents can really help to give them a head start in life."
CTFs were officially introduced in the UK at the beginning of September 2002 and the government has since added a £250 voucher to the fund of each newborn child in the UK.
