Sep 29 2008
Parents who are saving for their children have been advised to invest the money they have accrued on the stock market.
According to David Kuo, head of personal finance at Fool.co.uk, doing so enables them to get better returns.
However, he added: "The main thing is the parent has to decide what their tolerance to risk is and many parents are uncomfortable with investing in the stock market."
Mr Kuo also identified Child Trust Funds (CTFs) as a "good way" in which parents can save for their children.
He emphasised the fact that they are tax free and can help to cultivate in children a sense of importance of the different ways in which they can invest.
According to official government figures, 777,000 CTF vouchers were issued between April 2007 and March of this year, taking the total number of such accounts opened in the UK to 3.61 million.
