Trust funds encourage saving for children

Monday, November 7, 2005

Barclays has announced that it is not just those at the Child Trust Fund age that are benefiting from the government scheme.

According to the latest research from the bank, almost 70 per cent of parents would put money into an equivalent scheme for older siblings who cannot benefit from the Child Trust Fund vouchers.

"The Child Trust Fund scheme isn't just about creating a nest egg for one child in the family, but should extend to raising awareness of the need to save as much as is feasible for all children, as well as teach them the benefits of saving over spending," said Stephen Ingledew, director of Barclays financial planning.

This change in attitude brought about by the introduction of the Child Trust Fund concept comes in contrast to claims last month from National Savings and Investments (NS&I) that suggested one third of parents were not saving enough for their kids.

Instead of thinking about their offspring's future, NS&I suggested that parents were more willing to save for a holiday or new car.

Today's figures from Barclays also show the favourable feeling toward the scheme, with 57 per cent of people questioned saying they would consider putting aside £50 a month for their children.