Wednesday 13th December 2006
High street bank Halifax has described a range of potential child investments and reminds parents that "money is for life, not just for Christmas".
And it begins by recommending child trust funds as a tax-free method of saving from birth.
For toddlers, Halifax suggests providing a small amount of pocket money so they can experience planning their spending and learn to save.
Mike Regnier, head of savings at Halifax, said: "When it comes to building awareness of good financial practice parents must adapt their approach towards the childs age."
Children of school age should have their own savings account, according to the bank, such as the Save4it account which can be given a custom name such as "first bike account".
Teenagers may benefit from greater flexibility, the bank says, although they should be helped to understand the difference between products such as individual savings accounts and other types of investments.
Children are becoming more savings-savvy, as shown in research by Halifax which found 58 per cent now save more than they spend, compared with a third in 1988.
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