Saving For Children is a site dedicated to helping you learn about how to give you and your children the best financial head start in life. We provide information and
free brochures
on many aspects of child savings, from the Government's
Child Trust Fund
scheme, to
Saving
and
Investment Products
,
School Fee Plans
and
Inheritance Tax Planning.
With the rising cost of education, it is becoming increasingly important for children to have savings to fall back on. The earlier you start saving, the better placed you and your child will be for the future.
Expensive Milestones
- School fees: £87,000 to £195,000
- University education: £7,011 per year
- Wedding: £14,000
- First home: £191,293
Sources: The London magazine, Independent School Council, Halifax, Confetti.com, Land Registry.
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The Child Trust Fund
 |
Yes |
£5 |
1.5% p.a. |
Easy to Apply |
Apply |
 |
Yes |
£10 |
1.5% p.a. |
Easy to apply online |
Apply |
 |
No |
£25 |
1% p.a. |
Active fund management |
Apply |
 |
No |
£25 |
0.5% to 1.25% |
Choice of fund investment |
Apply |
 |
Yes |
£10 |
1.5% p.a. |
Active fund management |
Apply |
The government launched Child Trust Funds in April 2005. They're designed to help children learn about money, form the basis of a nest egg and to encourage parents to invest for their child's future. Parents of every child born on or after 1 September 2002 will receive a voucher worth £250. This rises to £500 for families that qualify for full Child Tax Credit. A further £250 will be paid to every child when they become seven years of age.
The money is there to be invested on a child's behalf in a special fund until he or she reaches the age of 18. In addition, parents, relatives and friends will be able to contribute a further £1,200 a year into the fund, which will roll-up free of tax until maturity.
For more information on the Child Trust Fund click here.
Making the right investment choice − factors to consider
When choosing suitable savings plans or investments for your child, many of the same considerations apply as for adult investors.
•Timescale − find out if the investment is suitable for the timescale you require, short term or long term.
•Accessibility − if you think the money may be needed at short notice, make sure there are no withdrawal penalties.
•Risk − Depending on your attitude to risk and the product you chose you may get back less than the amount you originally invested.
•Charges − even if you are saving only a modest amount, it is important to ensure that you are not paying excessive charges.
News on Saving for Children
Oct 14 2008
Children residing in the greater London area of Harrow have the healthiest savings in the UK, it has been found.
In news which may be of particular relevance to parents concerned about saving for their children, youngsters in the town were identified by Halifax has having an average balance of £2,193.
The bank also discovered that the London boroughs of Brent and Barnet were placed second and third in terms of the amount of savings in children's accounts, at £1,927 and £1,896 respectively.
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Oct 13 2008
A significant number of people with savings in the UK, potentially including those who are saving for their children, are switching accounts in search of increased financial security, it has been found.
Oct 10 2008
UK parents are willing to give up some of the finer things in life in order to save for their children, new research suggests.
Oct 9 2008
Depositors of money, including those saving for their children, can be confident that they will not lose their investments, despite the current turbulence on the world's markets.
Oct 7 2008
Many parents in the UK are helping to fund their children while they are studying, it has been found.
Oct 3 2008
Despite the current economic problems impacting on UK consumers, the number of parents saving for their children in Child Trust Funds (CTFs) has remained strong.
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Many thanks to F&C Management Ltd, Helen Pridham and Sarah Modlock for their contributions to savingforchildren.co.uk
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