Nearly half of all children in future will have to rely on the Child Trust Fund to provide them with...
Nearly half of all children in future will have to rely on the Child Trust Fund to provide them with a financial head start in life, according to a survey done on behalf of the Association of Investment Trust Companies.
It found that 41% of parents and grandparents have saved nothing for their children, and that the majority would like to see personal finance made a compulsory part of the national curriculum in order to encourage better savings in future.
Interestingly, the survey found that a greater proportion of children (85%) aged 15 to 19 would like to see personal finance taught in schools compared to their parents or grandparents (78%).
The AITC's research comes ahead of the implementation of the CTF, of which more news is expected by the time the pre-Budget report is presented by chancellor Gordon Brown in November.
The association argues that not including equities-based investments, such as investment trusts, in the remit of the CTF is a mistake as it will exclude younger people from developing a sense of savings linked to a wider portfolio of asset types.
Additional survey findings point out that despite calls for more personal finance education and better understanding of different financial product types, most parents and grandparents themselves steadfastly rely on banks and building society accounts to save for their children – that is, if they save at all.
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