A Treasury select committee has concluded that the new Child Trust Fund will generally only benefit the rich and not the poor. It is the wealthier family members that will be able to afford to save the additional £1,200 per year that they can invest which perhaps a poorer family may not.
Our view
The Child Trust is a political dead duck that will do nothing to encourage the culture of saving in the UK! We repeat, for it would seem the 100th time in this section, education, education, education!
Financial education in schools is the only way. Adults are too late and too set in their ways to help. Forget adults and educate children in the ways of finance. Just making a monetary gift to all new born children that adults can make additional payments to will not suffice.Adults will not rush to save for their children (unless they are wealthy and need the tax break).