Calls to save CTFs grow louder - Savings - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Calls to save CTFs grow louder

Calls to save CTFs grow louder

Category: Savings

Updated: 14/10/2009
First Published: 14/10/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The usefulness of child trust funds (CTFs) as a tool to teach children about saving has been highlighted as a further reason why these under threat accounts should not be scrapped.

Last week's announcement by the Shadow Chancellor George Osborne that the Conservative Party would cut spending on the funds should it reach power has since drawn considerable criticism.

At present, all families receive a £250 voucher when their child's birth is registered, with an additional £250 (£500 for poorer families) paid in by the Government on the child's seventh birthday.

However, under the Tory proposals, new spending on CTFs would be stopped for all but the poorest third of families, while the Liberal Democrats have gone even further by saying they would scrap the scheme altogether.

Responding to the announcement, Victoria Nye, director of education at the Investment Management Association (IMA), said that CTFs were an ideal hook to encourage children to learn the importance of saving money.

"It's a lesson from which all children, and in time, the State finances will benefit, as more people save younger and for longer," she added.

"The Personal Finance Education Group (pfeg) is already working with primary school teachers across the country on this very theme, knowing that all seven year olds have a CTF. Cutting CTFs would undermine the value of those lessons and could potentially halt further progress in promoting a savings culture among young people."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Just 47% have money in a savings account

We’re often told of the importance of saving, yet unfortunately, the message doesn’t always get through. Indeed, research shows that just 47% of those surveyed have money in a savings account, and 17% have no savings or investment whatsoever.

How much will you save this year?

Many of us have set savings goals for the year ahead, and planning to budget better and save more will be at the top of many financial resolution lists. But how much are you hoping to squirrel away? Encouragingly, many people have impressive targets.

How to make your savings go further this year

The start of a new year is always a good time to sort out your finances, and this year, focusing on your savings should be at the top of the agenda. We’ve got a few tips and tricks to help make your savings go further in 2017.
 
Close