Saving For Children

Saving For Children http://www.savingforchildren.co.uk Planning your finances for your children's future Parents 'still investing for children' despite recession The Children's Mutual has welcomed the latest child trust fund (CTF) figures which show parents are still investing for their children. Statistics for the first quarter of 2009 released by HM Revenue and Customs (HMRC) suggest that despite increasing pressure on parents in the face of the recession, nearly three-quarters of parents are actively using their CTF vouchers. Children will have an account opened for them by the government if the CTF voucher is not activated within a year; however, parents who fail to do this miss out on the chance to choose which fund to invest in. David White, chief executive of the Children's Mutual, says with 4.2 million children now supported by a CTF, the scheme is a "ray of hope" for parents involved in their children's savings. "Parents are acutely aware of the costs facing their young ones when they reach adulthood," he adds. However, research from Engage Mutual recently revealed that more than half of parents on lower incomes still do not open a CTF within 12 months of receiving the voucher.<img alt="ADNFCR-8000099-ID-19104274-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19104274" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/Parents-'still-investing-for-children'-despite-recession-181_1_19104274.html Thu, 02 Apr 2009 11:24:20 +0000 Friendly societies 'remain popular' for CTFs The Association of Friendly Societies (AFS) has released figures showing friendly societies are still the predominant sector for child trust funds (CTFs). Some 1.6 million accounts are now held by friendly societies, following reports of a further 300,000 new CTFs opened in 2008. Martin Shaw, general secretary of the AFS, says the commitment of its members to CTFs has helped increase the uptake of the government scheme among parents saving for their children. "Even at a time when the level of savings is generally very low, 40 per cent of parents or guardians or grandparents who open a CTF have topped it up," he comments. Premiums earned by such CTFs approached £250 million last year, accounting for one-fifth of the premium income in the friendly society sector. Family Investments recently encouraged more parents to get involved in their children's investments, after HM Revenue & Customs showed a small reduction in the rate of CTF uptake.<img alt="ADNFCR-8000099-ID-19103145-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19103145" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/Friendly-societies-'remain-popular'-for-CTFs-181_1_19103145.html Wed, 01 Apr 2009 16:25:02 +0000 'More help needed' on CTFs for parents Recent figures from HM Revenue & Customs (HMRC) show a small reduction in the uptake of Child Trust Funds (CTFs). The data comes just before the government makes changes to the CTF application, making it voluntary for providers to receive the CTF voucher from parents before opening an account. From April 6th the process will also be made easier for parents, enabling them to open a fund online or via telephone. One financial advisor, Family Investments, is urging HMRC to help parents by promoting the stakeholder option as the default account, removing the confusion surrounding the scheme. Family Investments' head of savings and investments Kate Baker says the continued low uptake of CTFs shows that more work needs to be done to encourage parents to make the most of their child's fund. "CTFs can have a real and positive impact on social mobility, but only if parents are encouraged to engage with the scheme," she adds. The Tax Incentivised Savings Association this month reminded mothers-to-be that every eligible child could benefit from tax free saving of £1,200 per year from the scheme.<img alt="ADNFCR-8000099-ID-19101059-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19101059" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/'More-help-needed'-on-CTFs-for-parents-181_1_19101059.html Tue, 31 Mar 2009 17:06:12 +0000 Children 'take savings more seriously' in recession Parents saving for their children are being told that young people are increasingly becoming more financially savvy in the face of the credit crunch. A survey by the Natwest MoneySense panel indicates that more than two-thirds of children know more about managing money than they did last year. Mums and dads will also be relieved to know that almost nine in ten young people claim to be keeping track of their money. However, children are still over-optimistic when it comes to estimating how much they will earn when they grow up on average they expect a £53,900 salary by age 35, more than twice the current average wage of £23,893. Maxine Norris, head of NatWest MoneySense for Schools, says the economic climate has encouraged young people to take savings and finance more seriously. "We also see quite a lot of children who are putting money away for college and higher education," she adds.<img alt="ADNFCR-8000099-ID-19099269-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19099269" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/Children-'take-savings-more-seriously'-in-recession-181_1_19099269.html Tue, 31 Mar 2009 08:54:00 +0000 Children 'have lucky escape' from the credit crunch Parents saving for their children are being told that children's inflation has been lower than the retail price inflation over the past decade. Research from the Halifax shows prices paid for the goods and services typically used by children have risen by 22 per cent in the last ten years, compared to a 32 per cent increase overall. The cost of four in ten key spending categories has fallen during this period, with games and toys, mobile phones and their related charges and music and DVDs all showing a decline. Figures published by Tescocompare.com recently showed that despite the credit crunch parents are still putting aside savings to help their children buy their first car. Almost seven in ten drivers aged between 18 and 24 have their own car by the age of 19, while their parents were more likely to have waited until they were 25 to get their wheels. Debra Williams from Tescocompare.com says young drivers are also more likely to end up with a first car that is "more modern and reliable" than the previous generation's.<img alt="ADNFCR-8000099-ID-19098298-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19098298" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/Children-'have-lucky-escape'-from-the-credit-crunch-181_1_19098298.html Mon, 30 Mar 2009 15:19:15 +0000 Parents urged to 'take charge of CTFs' A financial advice website is reminding parents saving for their children to make good use of their Child Trust Fund (CTF) vouchers. Statistics from HM Revenue and Customs show that a quarter of people who receive CTF vouchers leave it to the government to open an account for them. However, Fool.co.uk warns that parents who do this lose out on the chance to pick the right fund for their child. Under the CTF scheme, all children born after August 31st 2002 receive £250 from the government, or £500 for low-income families, which can be invested in a tax-free shelter until the child turns 18. Writing for Fool.co.uk, Alan Oscroft advises parents that stakeholder CTFs reduce risk but may not yield such high returns as non-stakeholder funds, which have no limits. Parents have also been urged to make regular top-ups to their children's funds, as Engage Mutual's research showed recently that adding just £10 monthly could give children a nest egg of over £4,000 when they turn 18.<img alt="ADNFCR-8000099-ID-19094701-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19094701" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/Parents-urged-to-'take-charge-of-CTFs'-181_1_19094701.html Thu, 26 Mar 2009 18:14:12 +0000 Isas 'still worthwhile' as investment options Research suggests that many parents saving for their children are choosing an Isa as part of their investment package in 2009. The current low rate of interest has discouraged savers from Isa investments in recent times as tax savings on them have diminished, making other options appear more competitive. However, figures from Fairinvestment suggest that more than half of British investors have split up their savings into multiple products to minimise risk, including cash Isas and stocks and shares Isas. Financial advisor Fiducia is reminding savers that any tax saving secured will last as long as the Isa does, so maximising allowances now will seem like a good investment when interest rates rise again. "Investors who have made full use of Isa allowances in the past are now looking at funds in excess of £100,000," says Fiducia's chartered financial planner Marc Ruse.<img alt="ADNFCR-8000099-ID-19091842-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19091842" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/Isas-'still-worthwhile'-as-investment-options-181_1_19091842.html Wed, 25 Mar 2009 15:24:26 +0000 Investors should 'take a long-term view' Parents investing for their children are being advised to take a long-term view rather than being seduced by eye-catching rates. Research by Moneyfacts.co.uk has found banks are now topping building societies on competitive savings accounts, offering an average of 2.25 per cent on cash Isas. But Rachel Le Brocq, press and public affairs manager at the Building Societies Association believes building societies still "offer the best long-term value". She advises that savers should "look carefully at who can offer you the most competitive deal" for the future, instead of continually switching to get better rates. Building societies still come out on top of banks in terms of customer satisfaction, with almost three-quarters of savers saying in a GfK NOP poll that they are happy with their lender. Additionally, building societies are considered more secure than banks, with almost twice as many bank savers reporting they did not feel their money was safe.<img alt="ADNFCR-8000099-ID-19089936-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19089936" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/Investors-should-'take-a-long-term-view'-181_1_19089936.html Tue, 24 Mar 2009 16:43:52 +0000 'Use ISAs now' to get tax-free benefits Time is running out for parents looking to make the most of tax-free benefits, financial specialists have warned. The Tax Incentivised Savings Association (TISA) says those with an eye on their children's investments should act before the end of March to use their 2008/09 ISA allowance. Director general of TISA Tony Vine-Lott said ISAs are a "fantastic savings vehicle", as they offer tax-free returns and cash ISAs give easy access to money in emergencies. He added that equity ISAs were also an attractive option if investors shopped around. "Investors should look out for the good deals on offer in terms in terms of discounted management fees for stocks and shares Isas," he commented. A recent study by Alliance and Leicester Savings revealed that 57 per cent of savers have opened a cash Isa and only a fifth are holding money in an equity ISA. The government is considering how it can use April's budget to encourage more people to save using cash Isas, including changing the allowance after it emerged that less than a third of savers are aware of the current limit of £3,600.<img alt="ADNFCR-8000099-ID-19086072-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19086072" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/'Use-ISAs-now'-to-get-tax-free-benefits-181_1_19086072.html Mon, 23 Mar 2009 09:06:05 +0000 'Top ten tips' to get children saving An American 'financial diva' has unveiled her top ten tips for teaching children the value of saving. Victoria Woods, president of ChappelWood Financial Services, says child savings are often neglected by parents and it is important to start early in "teaching their children the basics of financial literacy". Her tips include opening a child savings account where they can deposit birthday money, encouraging the use of cash over credit cards and buying them stocks in their favourite company. Co-Operative Financial Services has found that over half of UK parents have already begun teaching their youngsters about the credit crunch. With the recession biting deep, parents are finding that education on saving money now could save costly bail-outs later. Head of Child Trust Funds at the Co-Operative Zack Hocker says: "If children are taught about money from an early age, future financial decisions are likely to be better considered."<img alt="ADNFCR-8000099-ID-19084751-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19084751" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/'Top-ten-tips'-to-get-children-saving-181_1_19084751.html Fri, 20 Mar 2009 14:07:58 +0000 New credit rules 'may keep families in the black' A review of the legislation regarding credit could help parents stay out of debt, which can severely hamper child saving plans, according to one financial advisor. Statistics published by CreditAction this month show average household debt in the UK is £59,730 including mortgage repayments, leaving many families with little to put into their children's investments. The government recently announced a series of measures to help debt-ridden families, including banning credit card companies from raising credit limits without request and fair rules for debt enforcement. The Money Advice Trust (MAT) says it supports any action to promote responsible lending and borrowing decisions. Speaking for the MAT, Becky Boden-Wilks says the government measures may force families to confront their debt problems earlier and think about what they can "realistically afford". She says the MAT welcomes the new legislation and advises parents investing for children: "It is about planning ahead, doing your budget sheet."<img alt="ADNFCR-8000099-ID-19082887-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19082887" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/New-credit-rules-'may-keep-families-in-the-black'-181_1_19082887.html Thu, 19 Mar 2009 16:06:30 +0000 Saving 'gets tougher' for those hit by crunch Brits saving for their children are being hit hard by the credit crunch, according to figures which show £1.9 trillion of household wealth has vanished since it began. Research by PricewaterhouseCoopers shows that the downturn has wiped out roughly £40,000 per adult in the UK, making it increasingly harder to save money. Sean Gardner, director of MoneyExpert.com, says that conditions have "all moved the wrong way" for consumers, with rising rates on loans and credit cards set against plummeting savings rates. He encourages savers to "be as market savvy as possible", shopping around for savings providers and researching financial products carefully before committing themselves. Mr Gardner adds: "You simply need to stay on top of your finances and switch to a new provider when the deal expires." A recent poll by Moneysupermarket.com suggests that some planning their children's funds are already taking heed of this advice, as 44 per cent said they had either moved or were planning to move to a higher paying savings account.<img alt="ADNFCR-8000099-ID-19079351-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19079351" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/Saving-'gets-tougher'-for-those-hit-by-crunch-181_1_19079351.html Wed, 18 Mar 2009 10:05:37 +0000 'Save now for your children', expert advises Now is "as good a time as there has ever been" to encourage more parents to save for their children, according to a provider of Child Trust Funds (CTF). Engage Mutual spokesman Karl Elliott says that the government should do more to get the message of CTFs and savings out to the general public. Rather than concentrate on finding the best interest rates, he urges people to think about long-term savings for their own advantages, in order to build a "financial foundation" that will help their children in the future. "It is much harder now for young people to make that first step into adulthood," comments Mr Elliott, adding that any kind of endowment will benefit youngsters when the time comes to travel, start a business or save for a house. Research from Engage Mutual found recently that 55 per cent of those on low incomes were unaware of the CTF government handout.<img alt="ADNFCR-8000099-ID-19078028-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19078028" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/'Save-now-for-your-children',-expert-advises-181_1_19078028.html Tue, 17 Mar 2009 14:39:43 +0000 Fixed rate accounts 'may benefit savers' People looking for the best child savings may want to consider fixed-rate accounts instead of instant access accounts, according to a financial advisor. Moneyfacts cites the Bank of England's latest figures, which show a record low for instant access accounts with some in February paying as little as 0.17 per cent. Spokesperson for Moneyfacts Michelle Slade advises savers to look at the possibilities of fixed rate bonds, which "still offer some of the highest rates on the market" and have the added advantage of being guaranteed by the bank. Those investing for children should also be aware that some banks could start charging people for their savings accounts, according to Ms Slade. "We can't write it off completely yet," she says, advising that with the push to offer competitive savings, many people switching their accounts should check the terms and conditions before committing themselves.<img alt="ADNFCR-8000099-ID-19073734-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19073734" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/Fixed-rate-accounts-'may-benefit-savers'-181_1_19073734.html Fri, 13 Mar 2009 15:55:00 +0000 Parents urged to use CTFs to the full Pregnant women are being reminded to take advantage of the help available to them when saving for their child's future. The Tax Incentivised Savings Association (TISA) highlights the government's £190 Health in Pregnancy Grant for mothers-to-be who expect their babies to be born on or after April 6th. TISA's director-general Tony Vine-Lott says the grant will "help mothers at an expensive time", but also urges them to consider planning their Child Trust Funds (CTF) now. He adds: "Children need to learn early on the value of saving for the bigger commitments ahead." Research indicates that over half of those on lower incomes are not fully aware of the advantages of CTFs, with more than quarter of children losing out as the government opens one in their name 12 months after the voucher is issued. Engage Mutual 3GB, which compiled the findings, says even small regular top ups of £10 monthly can eventually add up to more than £4,000.<img alt="ADNFCR-8000099-ID-19071048-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19071048" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforchildren.co.uk/Parents-urged-to-use-CTFs-to-the-full-181_1_19071048.html Thu, 12 Mar 2009 14:34:37 +0000