Nationwide sees CTF trouble brewing

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Up to a million child trust fund vouchers are yet to be invested and latest research suggests significant variations in spending patterns among recipients of CTF lump sums at age 18, based on parental propensity to save, Nationwide says.

Recipients of the scheme whose parents do not add money to the government minimum committed are likely to spend the majority of their lump sums on shopping, holidays and entertainment. By contrast, children whose parents are able to afford to put in the maximum £1,200 allowance each year are more likely to save a significant proportion of the money they come into on their 18th birthdays. Nationwide estimates such children will receive a lump sum worth upwards of £40,000, with nearly half – 49% - likely to be put into savings and/or a deposit on a house, according to its survey of abou...

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