The Halifax have recommended that all family members should make contributions to their children's financial future by using child trust funds. The provider has opened 168,000 child trust funds since 6 April 2005, and wants to make parents aware that it is not only themselves who can save for their children - other family members and friends can save money for their future too. Research by the Halifax has found that 73% of parents expect grandparents to contribute to child trust funds. The provider has agreed, saying that they would like to see this too, rather than them buying toys or clothes for the grandchildren.
Our view:
The recommendation is admirable yet short-sighted. Many people do not save enough for themselves, yet alone their children. They need to save for their own future first.