Child Savings at a Crossroads
Monday, October 25, 2010
Introduced by Labour in 2002, the Child Trust Fund (CTF) programme saw all UK children receive a voucher worth £250 (£500 for poorer families), with qualifying seven year olds receiving an additional £250. This will shortly be cast aside with the scheme ending in January 2011.
But the government savings drive shouldn't spell the end of saving for children and grandchildren. In fact one of the lessons learned from the so-called "crunch" is the importance of long-term finance and saving.
So what are the alternative options? Firstly CTFs have never been the only tax-efficient savings option open to children. In the UK, friendly societies are unique in being able to offer Child Tax Exempt Savings Plans (CTESP).
Read the full article at www.parentingwithouttears.com.