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The Children's Mutual Finds Parents of Younger Children Being Warned to Start Saving
The Children's Mutual has found that older parents are warning the families of younger children to start saving now so that they can fund their child's future.
LONDON, ENGLAND, June 04, 2010 /Parenting PR News/ -- According to research by The Children's Mutual, a leading Child Trust Fund provider, parents of 18 to 30-year-olds are warning families of younger children to start saving now to fund the future, with nearly 28% saying that they have either re-mortgaged or are planning to re-mortgage to fund their child's adulthood. The research also revealed that many parents of adult children said that if they had their time again they would have saved more.
As the coalition Government threatens to cut the Child Trust Fund (CTF), The Children's Mutual is urging parents whose children are eligible for the accounts to make the most of them while they can.
David White, Chief Executive of The Children's Mutual, said: "Saving for your child is a 'necessity' not a 'nice-to-have'. Parents of today's 18 to 30-year-olds are having to find an average of GBP30,000 to fund their adult children the hard way - by re-mortgaging or borrowing further. We believe the only way that most families will be able to help fund children to fulfill their potential going forward is by saving regularly over the long term."
Parents of CTF holding children should not be disheartened or confused by the coalition's proposal. The Government has confirmed that for existing customers, the accounts will remain as they are; meaning that the families of the five million CTF holding children across the UK can continue to save up to GBP1,200 a year tax efficiently to help give their child a much-needed springboard into adulthood.
David White continued, "We believe that children stand the best chance of fulfilling their potential if money isn't an insurmountable barrier to their choices and decisions. The CTF has been a phenomenal success with families investing more than GBP5 million every week for their children and we urge parents to make the most of it."
Launched in 2005, Child Trust Funds were designed to provide a tax efficient, long-term savings vehicle for all eligible children. Eligible newborn children (born on or after 1 September 2002) received a GBP250 Child Trust Fund voucher (GBP500 for low income families) from the government when their parents registered for Child Benefit. The government then makes a second contribution of GBP250 (GBP500 for low income families) when the child reaches seven. Parents, family and friends can all then add to this account up to a maximum value of GBP1,200 each year. The proposed changes to the CTF will mean that for existing customers the accounts remain as before, with an annual tax-efficient top up allowance of GBP1,200, albeit without the Government's additional contributions from 1 August 2010.
Notes to editors
Research from The Children's Mutual Cost of Children Report. Figures from TISA, workings available on request.
Further information on the changes to Child Trust Funds can be found on The Children's Mutual website.
About The Children's Mutual - Home of the Child Trust Fund
The Children's Mutual's mission is to help parents, grandparents, family and friends fulfill their hopes for today's children. The Children's Mutual is the only UK company that specialises in long term savings for children and is now the choice of one in four parents for their child's Child Trust Fund, with over 800,000 accounts. This expertise has led several financial institutions and family-focused high street retailers to choose The Children's Mutual as their stakeholder Child Trust Fund provider.
Website: http://www.thechildrensmutual.co.uk/
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