It might not sound like an easy thing to do, but persuading your children to put away some of their hard-earned pocket money at an early age can be of huge benefit in the long-term. Getting children to regularly put money aside for savings is a useful way to teach them about budgeting and also gets them into a routine that they are likely to continue when they are earning for themselves.
Many banks are also eager to catch children young and as such will offer a range of freebies to get youngsters started. From free piggy banks to special offers on certain children's products, there is always plenty for parents to choose from – although the interest rate should remain an important factor, regardless of which toy is more attractive to the child!
Since August 2002, all children born now receive a government voucher worth £250 which can be used to open a child trust fund (CTF) account. These tax-free savings can be topped up by family members as the child grows up and the scheme allows £1,200 to be invested every year. This new scheme does not allow the money to be accessed until the child reaches the age of 18, with the savings seen by the government as an investment in the child's future.
Everything on preparing your finances for your children's futures. From Child Trust Funds through to tax planning. Request your FREE brochures here.
Family Investments provide straightforward Child Trust Fund stakeholder accounts.
An enticing product that lets you make tax-free investments for your child.
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