Almost half of parents interviewed by the Association of Investment Trust Companies have stated that the introduction of child trust funds will make no difference to their savings habits. Around 44% of parents say that the child trust funds will encourage them to save more for their children's future. The study found that although 14% of parents said that financial skills were one of the most important skills that their child would need, 30% do not put any money aside for the future. Of the seventy percent that do save, almost a quarter put money into a piggy bank instead of a savings account or investment where interest is paid.
Our view
For five years now in this column, we have laboured about education and transparency. Offering "sexy" investment accounts does not, never has and never will work. Forget about you and I, education for our children and easy access is the way.
We are being educated continually about saving the environment and recycling in the UK is the new boom industry. Yet the only finance education people get is repeated bad news in the press. Real money lessons in Schools is what will save the next generation.