Tooth fairy and CTF tipped to get kids saving

Parents have always, quite sensibly, wanted their children to learn the habits of good financial management as early as possible and have consequently used a number of means at their disposal to do so.

The classic method to give youngsters an early experience with money may never have been bettered though it seems, with The Children's Mutual citing tooth fairy myth as an effective way of teaching children about dealing with cash.

Meanwhile, AWD Chase de Vere advised parents to set up accounts with a minimum deposit with regular savings and harsh penalties for withdrawing funds in order to cajole Britons into sensibly saving for the future.

Savings firm engage Mutual Assurance seems to agree, with the company establishing its own Easy Save account which gives consumers the option of setting aside a small amount of money at regular intervals to gain good returns with a minimum of risk.

Parents and other relatives of young children have, as ever, been reminded of the benefits of a child trust fund (CTF), while a report from MoneyExpert revealed that a number of "great deals" are currently on offer, with a price war between providers meaning that shopping around can result in a top interest rate for savers.

Relatives that are strapped for cash but still want to help out the younger members of their family were given the opportunity this month to give-as-they-shop, with a deal struck between Family Investments and the Nectar loyalty card scheme whereby points are turned into pounds for kids and grandkids of shoppers.

These special accounts and focused information could well be having a positive effect on the savings culture in Britain it seems, with Sainsbury's reporting a seven to eight per cent rise in the savings market in the UK every year, with consumers finally getting the message regarding the importance of saving.

And new prime minister Gordon Brown has been given a call-to-action from those of us wanting a more equitable tax system for children that bit too old to save in a CTF. Mr Brown has been asked to offer tax-benefits for these children similar to those available in a CTF as he succeeded Tony Blair in the role of PM this week.