Family members have been told that they can make a real difference to their child's financial security by regularly contributing towards a child trust fund savings account.
According to research from the Pep [personal equity plan] & Isa [individual savings account] Managers' Association (Pima), children of parents who take no action after investing the government's savings voucher initially will receive £1,106 on their 18th birthday.
However, it claims that if a family collectively agrees to contribute £1 per day then the offspring could be the beneficiary of a total savings windfall of £11,360.
Alternatively, monthly contributions of £100 into the tax free savings accounts will see them receive £37,529, it is claimed.
"It is very important that parents and grandparents take a long-term view of CTFs [child trust funds]," commented Tony Vine-Lott, director-general of Pima.
"Contributions, regardless of size, made on a monthly or weekly basis will make a significant difference over time."
Child Trust Funds are a long term savings account that are designed to provide children with some savings that can be accessed when they reach 18 years of age.
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