Saving For Children

Saving For Children http://www.savingforchildren.co.uk Planning your finances for your children's future Savers urged to be wary People saving for children for a proverbial rainy day have been urged to be wary of headline rates of interest that might ultimately flatter to deceive. According to Helen Cook, head of savings at Sainsbury's Finance, the current economic climate has seen saving rates increase considerably in recent months but in many cases restrictions are also applied. So while an investor might be seeing good returns on their assets, they could also be charged for making a withdrawal or forbidden from doing so altogether, Ms Cook explained. She said: "As the rates are as artificially high as they are at the moment, then there has to be some compensation on the other side. "There's no such thing as a free lunch - you're paying for it in some fashion." Personal deposit savings account growth was weaker in May than in April of this year, according to figures released recently by the British Bankers' Association. http://www.savingforchildren.co.uk/Savers-urged-to-be-wary-181_1_18668390.html Thu, 03 Jul 2008 14:17:31 +0100 New cash Isa launched by Alliance & Leicester A new cash-based individual savings account (Isa) has been made available by Alliance & Leicester. The financial services firm has dubbed its newest product the Easy Isa in reference to what it suggests is the straightforward and easy-to-understand way in which the account operates. Up to £3,000 can be invested into the Easy Isa and interest is paid out at six per cent on an annual and tax-free basis. Many parents around the country use their tax-free Isa allowance in order to bolster their efforts of saving for children and Alliance & Leicester is keen to see people take advantage of its latest offer. "A cash Isa is just a simple savings account, except that the interest is paid without tax being taken off," said Hetal Parmar, manager for savings at Alliance & Leicester. "Our Isas have proved to be extremely popular, offering great rates and the convenience of 24-hour access." The Building Societies Association recently claimed that people across the country have been flocking to branches of its member organisations in recent months. http://www.savingforchildren.co.uk/New-cash-Isa-launched-by-Alliance-Leicester-181_1_18665559.html Wed, 02 Jul 2008 11:00:58 +0100 Savers 'flocking' to building societies Savers in the UK are flocking to building societies in search of good returns for their assets, it has been claimed. According to the British Building Societies Association (BSA), its members received close to £853 million in deposits over the course of May, which was £245 million more than the same month in 2007. The association insists that an increasing number of people are preferring to put their savings into building society accounts rather than hold them in stocks and shares. However, net receipts into cash-based individual savings accounts were down to £272 million for the month compared to £404 million in May last year. Adrian Coles, director general of the BSA, said: "High interest rates offered by societies, coupled with attractive product ranges, have seen customers continuing to flock to societies with their savings." British consumers are keen to save but in many cases are unable to do so, Howard Archer from analyst firm Global Insight said last week. http://www.savingforchildren.co.uk/Savers-'flocking'-to-building-societies-181_1_18663319.html Tue, 01 Jul 2008 10:36:00 +0100 Calls for CTF clarity Calls have been made for relevant policymakers to offer a greater degree of clarity to parents considering engaging with a child trust fund (CTF). According to the Family Investments company, the CTF system should be simplified in a manner that removes the "burden of choice" and leaves parents with only one CTF option. The firm insists that parents would be more likely to contribute to CTFs on behalf of their children in the long-term if they understood that the stakeholder version was their only option when it comes to child saving. Miles Bingham, head of savings at Family Investments, said: "This action will remove the burden of choice and make the scheme more attractive to busy parents and for those people who struggle to understand the relatively complex options out in front of them." CTFs opened on behalf of children born after September 2002 cannot be accessed until they reach maturity when the account holder has reached 18 years of age. http://www.savingforchildren.co.uk/Calls-for-CTF-clarity-181_1_18663316.html Tue, 01 Jul 2008 10:35:32 +0100 Review your will regularly, expert urges Anyone who has made a will in order to divide their assets up if they die has been advised to review the document on a regular basis. Helen Foster, head of wills and legacies at Help the Aged, is convinced of the need for regular reviews if an individual wants to be completely sure that their family will inherit their assets in the way they intended. Ms Foster suggested that a will should be rewritten when a significant event such as the birth of a child or the sale of a family home has taken place. "We recommend that you review your will at least every five years, or when your circumstances change," she said. "Advice is not difficult to obtain. Help the Aged offers a will information pack, and a will advice service, where people of retirement age can obtain free professional advice." Around 80 per cent of the people quizzed by Fool.co.uk recently said they expect their family home to account for the bulk of the assets they leave behind as part of an inheritance. http://www.savingforchildren.co.uk/Review-your-will-regularly,-expert-urges-181_1_18660939.html Mon, 30 Jun 2008 10:52:42 +0100 Many Brits 'struggling to save' Many households across the country are struggling to set money aside on a regular basis, it has been claimed. According to Howard Archer from the research firm Global Insight, the financial pressures on individual consumers are currently such that while most people want to save many are unable. Parents often see saving for children as being among their financial priorities but debt problems, mortgage demands and rising inflation are limiting the amounts of spare cash Britons have at the end of each month. However, Mr Archer has suggested that personal deposits into savings accounts will increase in months to come from their currently levels, which he maintains are "still very low by long-term norms". Meanwhile, the latest figures from the Children's Mutual suggested that British parents have become 16 per cent more generous over the past 12 months when they come to play the role of tooth fairy for their children. http://www.savingforchildren.co.uk/Many-Brits-'struggling-to-save'-181_1_18658803.html Fri, 27 Jun 2008 10:52:54 +0100 New pension product launched by Zurich A new pension trust product has been launched by Zurich as part of its range aimed at people planning for the future of their financial assets. The Pension Discretionary Trust allows investors to ensure that benefits are paid to their family two years after their death, without being liable to inheritance tax. Control over how an estate is to be divided up can offer pensioners peace of mind and the pension trust is described by its operator as being a flexible and easy way for a family to plan for the future. "Individual pension trusts are an important retirement planning area for financial advisers and Zurich is pleased to support this expanding market with innovative solutions," said Dave Lowe, pensions management director at Zurich. Meanwhile, Friends Provident recently reported that people saving for retirement in the UK want to see more of a commitment from government in terms of pension funding. http://www.savingforchildren.co.uk/New-pension-product-launched-by-Zurich-181_1_18656568.html Thu, 26 Jun 2008 10:21:07 +0100 Tooth fairy 'getting more generous' British parents are becoming more generous when they come to play the role of the tooth fairy to their children, it has been revealed. Research by the Children's Mutual has found that despite the recent downturn in the UK's economy, the typical child's tooth is replaced with 16 per cent more money now than was the case a year ago. In fact, each tooth is now worth an average of £1.22, which represents an increase of around 258 per cent over the past 25 years, the child trust fund provider reports. "Parents may think that being the tooth fairy is an expensive business, but the tooth fairy can help them talk to their children about the value of money," said David White, chief executive of the Children's Mutual. Earlier this month, the Nationwide Building Society reported that three-quarters of people in the UK consider saving to be an important part of financial management. http://www.savingforchildren.co.uk/Tooth-fairy-'getting-more-generous'-181_1_18654580.html Wed, 25 Jun 2008 11:09:56 +0100 Young Brits' money woes highlighted A new report has highlighted the problems many young people in the UK are being faced with. Research by the two charity organisations YouthNet and Citizens Advice found that almost one in four Britons aged between 16 and 24 are feeling stressed because of their money problems. Many parents aim to help their offspring get a good start to their financial life through by saving for children as they grow up but increasingly young people are finding themselves with debts to worry about as they approach their 20s. In fact, around 47 per cent of the young people quizzed as part of the recent study said that they had experienced some sort of problem with debt and for many the situation was traumatic. Last year, the government launched an initiative that would aim to promote the use of child trust funds as way for teachers in schools around the country to engage their students on personal finance issues. http://www.savingforchildren.co.uk/Young-Brits'-money-woes-highlighted-181_1_18652479.html Tue, 24 Jun 2008 11:09:53 +0100 Saving is important, say 75% of Brits Saving is an important part of financial management, according to 75 per cent of the people polled recently by Nationwide Building Society. For many Britons saving for children is seen as crucial but only 50 per cent of all adults are currently setting money aside on a regular basis. And despite the emphasis many people put on saving for children or for a proverbial rainy day, most confess that they are not putting as much aside as they feel they should be. Furthermore, an increasing number of consumers across the country feel that the current economic environment makes it not a good time to start saving. Matthew Carter, Nationwide director for savings, said: "As food and fuel prices continue to rise, and people feel gloomier about the economy, more consumers think it is a bad time to save. "This is a shame given many savings providers are offering highly competitive and attractive rates at the moment." According to previous research by Nationwide, Britons aged16 to 24 and 55 to 64 are among those most likely to consider saving to be important. http://www.savingforchildren.co.uk/Saving-is-important,-say-75-of-Brits-181_1_18646263.html Thu, 19 Jun 2008 12:26:16 +0100 Middle Britain 'being squeezed' Families who fall into the category of "middle Britain" are seeing their finances being squeezed, according to a new study. The Axa insurance firm has suggested that there are in fact fewer middle Britain households than is commonly assumed and that those there are have less expendable cash than might be expected. Many parents from middle Britain focus on saving for children but an increasing proportion have found themselves needing the help of a debt advisor in recent months, despite earning upwards of £70,000 each year. "What is also clear is that middle Britain households have felt the effects of the rising cost of living," said Steve Folkard from Axa. "Despite seeing an increase in their disposable income over the past two years, the typical middle Britain household has not been able to increase their relative spending power." Around 72 per cent of British parents have engaged with the child trust funds opened by the government on behalf of their son or daughter after their birth, the Treasury reported recently. http://www.savingforchildren.co.uk/Middle-Britain-'being-squeezed'-181_1_18644032.html Wed, 18 Jun 2008 12:00:42 +0100 Report highlights spread of 'cool dad syndrome' A report from Friends Provident has highlighted the spread of what the company is calling "cool dad syndrome" among families in the UK. According to the financial services firm, more and more fathers are trying not to fall behind the times and are spending considerable sums on the latest gadgets and clothes. In fact, the latest research suggests that dads are now spending almost £800 each year on average in order to seem cool to their kids, but this money might be put to better use in a child trust fund or another vehicle designed to promote saving for children. Peter Timberlake, head of public relations at Friends Provident, said: "Being a cool dad is not cheap and fathers are spending significant amounts of money keeping up with technologies and fashions for themselves and their children. "Many are focusing on the here-and-now, rather than thinking about tomorrow." http://www.savingforchildren.co.uk/Report-highlights-spread-of-'cool-dad-syndrome'--181_1_18640030.html Mon, 16 Jun 2008 14:35:31 +0100 Almost half of Brits saving regularly Almost half of all adults in the UK are saving money on a regular basis, according to a recent study. GE Money reports that many people have adjusted their financial habits in recent months as a result of the credit crunch and 44 per cent are now saving on a monthly basis. Saving for children is among the most common reasons for setting money aside regularly but the motivations and the amounts being saved vary a great deal among the population. And while saving for children is a priority for many thousands of parents, the worsening state of the British economy means millions of consumers are struggling simply to make ends meet, GE Money reports. A spokesperson for the company said: "As we approach summer we are urging people to take an active interest in sorting out their finances." Earlier this week, Sainsbury's Bank revealed its view that more and more British parents are likely to borrow money in order to cover the costs of their children's school fees. http://www.savingforchildren.co.uk/Almost-half-of-Brits-saving-regularly-181_1_18637433.html Fri, 13 Jun 2008 11:01:01 +0100 More British parents set to borrow to cover school fees An increasing number of British parents are expected to borrow money in order to cover the costs of sending their children to school, it has emerged. Sainsbury's Bank reports that it issued almost 18,000 loans for this purpose over the course of last year and that it anticipates this figure rising in 2008. Parents tend to view paying school fees as investments for children but increasingly they will be unable to cover these costs from their own resources and will instead resort to borrowing. The bank has explained its prediction by noting that more children are being put though private school and that the related fees have been increasing, while rises in the cost of living are seeing many parents stretched financially. Meanwhile, James Elliot, coordinator for the Transact financial inclusion network, said recently that the lack of saving in the UK is a "huge problem". http://www.savingforchildren.co.uk/More-British-parents-set-to-borrow-to-cover-school-fees-181_1_18630980.html Tue, 10 Jun 2008 10:17:10 +0100 Lack of saving is "huge problem" Britain's lack of saving is a "huge problem" that could leave many thousands of people facing serious financial difficulties in years to come, it has been suggested. James Elliot, co-ordinator for the Transact financial inclusion network, is convinced that more needs to be done to promote an environment of saving around the country. Mr Elliot maintains that Britons tend to be more reliant on borrowing than people in other parts of the world and the situation needs to change. The government is aiming to encourage saving for children and for financial emergencies among UK consumers but the present situation leaves many people vulnerable, according to the Transact expert. "We have one of the lowest saving ratios in the world. It's a huge problem and we need to shift from a culture of borrowing," he said. Last week, the Building Societies Association reported that its members have been attracting record levels of investment into their cash-based individual savings accounts in recent months. http://www.savingforchildren.co.uk/Lack-of-saving-is-huge-problem--181_1_18629000.html Mon, 09 Jun 2008 10:44:12 +0100