Half of all parents believe launch of the Child Trust Fund makes no difference to whether they save more for their children's future, suggests a survey by the Association of Investment Trust Companies.
Research conducted by the AITC ahead of yesterday’s official CTF launch revealed only 44% of parents will be encouraged to save more on behalf of their children as the majority (50%) think it will make absolutely no difference to their savings habits at all.
Launch of the CTF had been designed to encourage parents to put money aside for their children by contributing an opening account voucher worth at least £250 for every children born since September 2002.
However, early feedback indicates the only parents who are likely to put money into a CTF are already saving for their children’s future.
The AITC study of 2,268 parents says of those more likely to save, 15% say they would be “much more likely to save for their children” while 29% says the CTF will make them save just a little more and one in six (15%) are more likely to just put it into a piggy back, rather than a savings account, where the money will lose value through inflation.
Survey findings also reveal three out of ten parents (30%) still put no money aside.However, one of the most telling results of the research points out most of the parents polled will find their children are not entitled to a CTF so these parents are given no encouragement to put extra money aside. IFAonline
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