Feb 1 2008
Just over half of all parents in the UK are choosing to set aside money they would otherwise give their children as pocket money into an account that offers a worthwhile rate of interest, it has been revealed.
Many parents are investing regularly into a child trust fund (CTF) savings account and according to Engage Mutual Assurance the difficulties facing the wider economy are having an impact on how parents help their kids financially.
In addition, the financial services firm reports that almost half of all British parents are expecting their children to fund their own university tuition fees and any related costs.
Karl Elliott, 3GB spokesperson for Engage Mutual Assurance, said: "Over the course of 2007, we’ve seen family relationships strained by money matters.
"We are committed to addressing families' financial needs and have introduced products such as our Junior Easy Save account for children which enables parents to save tax free for children who missed the CTF deadline."
Increasing amounts of money are being channeled into the CTF accounts opened on behalf of children around the country, according to a recent report from the Tax Incentivised Savings Association.
