Parents should be discussing with their children what they will do with the money from their child trust fund, one expert says.
Phil Perry spokesperson for Ark Financial Planning, said that as child trust funds had the potential to accumulate a large amount of money, discussing the fund with a child as they were growing up would help them spend the money sensibly.
He said: "If your child reaches the age of 18 and £9,500 suddenly comes into their possession, what are they going to do with it?"
Mr Perry expressed his fears that children who were "on the wrong track" could waste their child trust fund if they were not given advice from their parents.
His comments follow a report in the Daily Telegraph which suggested that the first group of children eligible for child trust funds would receive a total of £2.4 billion, in today's money. That equates to £9,500 each.
All children born on or after September 1st 2002 receive a £250 voucher from their government towards their child trust fund.
Discuss child trust funds with kids
Discuss child trust funds with kids
Fri, 08 Feb 2008
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