Parents 'still saving for their children'
Credit crunch failing to affect childrens' savings managed by parents, according to new research.
Parents are still putting money aside for their children despite the economic downturn and the impact it is having on their finances, research suggests.According to the Children's Mutual, three-quarters of parents who have received Child Trust Fund vouchers are actively investing them.
The organisation's chief executive David White said evidence shows that those who open a Child Trust Fund are more inclined to make regular top-ups.
"Conversations we have had with our customers show that saving for their children is often the last thing they want to cut back on when money is tight," he remarked.
Under the Child Trust Fund scheme, parents receive vouchers worth £250 which they can use to open savings accounts on behalf of their children.
The government hopes parents will then make their own contributions into the accounts, which their children will have access to once they reach the age of 18.
Mr White claims that children whose parents begin saving from birth and who top up their Child Trust Fund by £24 a month could have a nest egg worth £9,750 by the time the fund matures.
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