Sep 11 2007
Parents around the UK have been urged to use the vouchers issued for investment in child trust funds (CTFs) wisely in order to secure the financial future of their sons and daughters.
Many parents are allowing funds set aside by the government for CTF investment to be channelled into default accounts, which might not be the most suitably or financially rewarding, according to Hugo Shaw, business manager for Bestivest.
Mr Shaw maintains that it is important for parents to understand the kind of CTF options that are available to them and to make an informed decision in the interest of giving their offspring a solid start to their adult life.
"Don't simply roll into the default fund… take control of your finances, or indeed those of your children via the CTF," he said.
"Whilst investment decisions can be confusing, apathy is likely to be the biggest factor for the popularity of cash CTFs - choosing cash is easy."
The government recently revealed its intention to encourage schools to engage children on financial issues through explanation of how CTFs function.
