Saving for children has never seemed to be top of the priority list, as periodical research shows. Recent research has revealed that investments and pensions are the least popular, especially if associated with the stock market. The most popular savings for children were revealed to be those based around cash deposits.
Our View
We consider that many of the available savings policies for children are poor value for money. These are generally 10-year 'with profits' plans. The introduction of the Child Trust Fund, set for 2005 should regenerate savings for children because of the Government incentives. But, it must be kept simple if it is to reach the people that most need it.
Full details of the Child Trust Fund have not yet been released but it is possible that the Government will match payments made by parents or relatives, up to a certain level. If this is the case, everyone should at least consider it.