Don't gamble with your child's future

child trust funds

More work needs to be done to educate parents about the basic investment choices for their Child Trust Fund money, if they are to produce a meaningful sum for their children

It has been nearly a year since the launch of the Child Trust Fund (CTF) initiative. The scheme gives £250 to every child born on or after 1 September 2002 to kick-start their savings, with children in low-income families eligible for up to an extra £250 each. When CTFs were announced in the April 2003 Budget, it was the first time the Government had pledged to give each child in the country a nest egg. By November 2004, the Government had started writing to all parents and guardians of eligible children urging them to set up a CTF by April 2005. The first wave of vouchers were despatch...