More parents saving for their children's future
According to economic experts and financial professionals, more and more parents are now working towards providing their children with a more secure financial future through saving for them, thanks to the child trust fund scheme that was introduced by the government a couple of years ago. Recent reports and figures show that this scheme has proven very popular, and has encourages many parents to think more about saving for their child's future. The CFT scheme was started around two years ago, and according to the economic secretary Ed Balls over 2.5 million of these trust fund accounts have been opened by parents since they were introduced.
A payment of £250 is made upon the birth of the child by the government, and this money can be used to place in one of three trust fund accounts for the child's future. Parents are then allowed to put up to an additional £1200 per year into the specified account to save towards the child's future. According to officials this could result in a tidy little nest egg for the child once he or she reaches eighteen years of age, and could also help to teach the children about savings and investments. Officials think that this is an important aspect of this type of savings scheme, as recent data shows that many of today's teens and younger adults are very confused about finances and investments.
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