May 3 2007
British parents are being advised to make the most of their child trust fund (CTF) by regularly topping up the accounts to build up a financial springboard for their child.
F&C Investments notes that without any additional contributions from relatives or friends, the original £250 sum invested into a CTF will not return a huge amount when the child reaches 18 years of age.
Jason Hollands, head of group communications at the firm, commented that part of the role of the CTF is to promote a savings culture, which involves families investing their own money, rather than merely just the initial handout.
Mr Hollands questioned as to what methods could be used to encourage families to invest their own money in the funds.
"That is all about educating people better, and people seeing the returns that they're getting," he concluded.
In January 2007, The Children's Mutual called for whole families to become involved in saving for children, noting that investing £10 a month can result in savings of £4,700 when a CTF matures.
