The number of parents investing in child trust fund savings accounts is "disappointingly low", according to an expert.
A spokesperson from Moneyfacts has claimed that the government needs to do more to raise the profile of the funds to encourage parents to invest their vouchers in savings accounts.
The key to encouraging a higher take-up rate is to help parents understand the long-term benefits of savings by emphasising the potential rewards from putting money away regularly, stated Lisa Taylor.
"Not only do the parents need to realise the long-term benefits of saving, the children also need to be taught to understand value of money from an early age," stated Ms Taylor.
The expert then contended that this year could be the ideal time for the government to consider introducing "financial education" on the national curriculum to promote a savings culture.
Ms Taylor also suggested that in order to appeal to the 25 per cent of parents who have not taken up the offer of the £250 voucher, the government needs to look at whether they are deterred by factors such as the paperwork.
Last week, the Treasury announced that almost 2.5 million child trust fund savings accounts have now been opened since the scheme's introduction in 2005.
Child savings uptake disappointing, expert claims
Child savings uptake disappointing, expert claims
Thu, 11 Jan 2007
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