Even in this difficult savings climate, both parents and their children are making a real concerted effort to save more towards their future.
Parents in particular realise they have to do their bit in helping their children minimize student debt by investing savings into their children’s Child Trust Funds (CTF).
Joe Luong, Director of http://www.myeggnest.com the independent children savings website, says, “The Child Trust Fund is a great way to save for your children’s education. The idea behind CTFs is that the investment will grow to give children a financial kick-start at the age of 18, all tax-free. Parents should open their Child Trust Fund as soon as they can topping it up as often as they can”.
Since its launch in 2005, over 3.61 million children have set up their CTF accounts. Figures from the Children’s Mutual showed that in 2007 almost half of new CTF accounts opened had a monthly direct debit set up at the same time. This is an increase of over 9% from 43% of accounts with direct debits in 2006 to 47% of accounts in 2007.
The average monthly amount deposited into a CTF by direct debit is £23.41, up nearly 4% from 2006. If this monthly contribution remains unchanged for 18 years, the CTF could grow to a lump sum of £9,500 (These projections are based on a 7% growth rate).
In addition, the average annual amount deposited by cheque has also increased to £441 in 2007 from £410 in 2006, a 7% increase. Furthermore, more than a third of those who have opened their CTF have topped up to the maximum limit of £1,200.
A recent survey conducted by the Child Trust Fund provider, The Children's Mutual, found that almost a third of young people are also saving towards their university education. Joe Luong welcomed the trend as a positive anecdote to the current student debt crisis facing graduates.
'MyEggNest is very encouraged to see young people making a real effort to save for their future university costs and that parents are taking their children’s education very seriously by investing and topping up their Child Trust Funds.'
Press Contact: PJP Gaye Price-Jones/Leslie Burns t: 0870 7708826 firstname.lastname@example.org www.pjpartnership.co.uk
MyEggNest.com offers easily accessible online information comparing CTF’s and children’s saving accounts. There’s also a wide selection of reviews providing parents with the information they need to make an informed decision & get guidance from other parents in the form of a Child Trust Fund discussion forum. If you’re looking for clear and concise information on CTF’s and children’s savings accounts from a reliable source visit http://www.myeggnest.com
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