CTFs are a good start but other options should be considered

investment trusts

CTF tax advantages are unlikely to make a great difference to basic rate tax payers so they should give primary consideration to growth opportunities and expenses when choosing saving products for children

Saving for children has become ever more important, because the costs of raising and educating children have risen while government support has declined, in particular for education. As parents now have greater responsibility for the costs of higher and university education, saving on behalf of children seems to be a sensible strategy for both parents and grandparents. The government is encouraging saving, for example with the recent launch of the Child Trust Fund (CTF). CTFs are available for children born after 1 September 2002. Children are granted, via their parents, an initial £250 g...