Parents who have started saving money on behalf of their children, are topping up their Child Trust Fund (CTF) investments, the Building Societies Association (BSA) has revealed.
Net receipts into cash CTFs totalled £3million more than in August, with nearly three-quarters of parents opting for the cash-based investment last month.
The fact that parents are starting to put more money into their children's investments is "good news", says Brian Morris, the head of savings policy at the BSA.
He says the CTF is a "great way" for parents and grandparents to invest in children's financial futures.
Mr Morris pointed out that saving money on a monthly basis could help children to become first time buyers when they grow up. He referred to recent statistics from the office of the deputy prime minister that predicted the number of young adults that will be able to afford their first home in 2026 will have fallen by a third.
"For those parents that have still not deposited their child's voucher, we urge them to dig it out and think about where is best to invest it," Mr Morris said.
Last week, parents who have not yet invested their vouchers were sent letters to urge them to take action and start saving money for their children's future.
BSA: Parents topping up children's savings
BSA: Parents topping up children's savings
Mon, 24 Oct 2005
Recommended links
Child Trust Fund GuideSavings and Investments for Children
Compare and apply for a child trust fund
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