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Parents split over child fund future

Parents are split over the introduction of child trust funds, with 44 per cent saying they are encouraged to save more while half say it will make no difference to them.

The research commissioned by the Association of Investment Trust Companies reveals that of the parents who are positive about the CTF, 15 per cent say they will be much more likely to save for their children while 29 per it will only make them a little more likely to save.

Fourteen per cent of parents believe that financial skills are the most important skill their children need in life but 30 per cent do not put aside any money for their offspring’s future.

Fifteen per cent of parents who are saving for their children’s future put the cash in piggy banks rather than in a savings account or investment vehicle.

AITC communications director Annabel Brodie-Smith says: “Despite the Government’s best efforts, the child trust fund is not going to encourage everyone to save more for their child’s future. With 50 per cent of parents claiming the CTF will make no difference to their savings habit, there is clearly still a lot of work to be done. It is important that the CTF is effectively linked to financial education for children and parents as it is vital that British people save more now than ever before.”

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