Securing a stake in the future

saving for children

It is not tax efficient to start saving for a child before it is born but after its birth good options include the child trust fund and stakeholder pensions, based on a well diversified portfolio

A few things have happened recently to bring the issue of saving for children into the spotlight. Firstly, the launch of the Government's Child Trust Fund hit the headlines. Many weekend personal finance journalists decided to approach this from the negative side and highlight the lack of investment decisions made by parents who have received the vouchers and done nothing with them. Secondly, rising residential property prices have made parents realise the only way their children are ever going to leave the nest is with a helping hand from mum and dad. The birth of a child provides an i...