Apr 18 2008
The fact that vouchers no longer need to be presented by parents in order to open a child trust fund (CTF) is good news for these vehicles as a way of saving for children, according to one expert.
David White, chief executive of the Children's Mutual, has suggested that five per cent of people who tried to open a CTF with his company were not able to do so because despite a series of reminders they could not produce the relevant voucher.
In many cases, until recently, parents have been too busy with their newborn children to spend much time sorting out their finances and as a result CTF vouchers could not be found and the chance to save tax-free was lost, Mr White explained.
Reflecting on the decision to remove the need for a voucher to open a CTF, Mr White said: "The most important thing with this is that it's great for the parents, and it's great for the kids."
Earlier this year, the government announced its plan to encourage teachers to use CTFs as a way of engaging young children on personal finance issues at an early age.
