Child Trust Funds CTF: Fail To Spark Interest

Child Trust Funds (CTF) have failed to spark consumer interest according to the Children’s Mutual.  They say that financial provision for the young is still lagging, even though there has been a rise in the number of parents talking to Independent Financial Advisers about Child Trust Funds.  

Parents of children in the 18 to 30 age range are asking “why they were not given advice 20 years ago” according to the The Children’s Mutual.  These parents often have to remortgages their home to pay for higher education for their children or to get them on the property ladder.  According to Engage Mutual, out of the Child Trust Funds opened in the last 12 months, almost 12 per cent were opened in January, which is far more than the monthly average for the rest of the year.

Our view

Well no surprise there.  Child Trust Funds (CTF) have literally been an exercise for the Government to give away tax payers money to children at a later date.  We predicted no spark for additional savings and we have been proved right.  You cannot change the habits of man with a few hundred pounds incentive, education is key and will always be key.

Useful links:

Learn more about Child Trust Funds and related topics in the Savings Adviser Channel 

Request expert financial advice now

Purchase guidance on financial planning in the Money Shop 

Back to News Summary