Parents 'need to save, save, save' for children
By myfinances.co.uk staff
Parents with children who qualify for a child trust fund (CTF) have been urged to "save, save, save" while they still can.
Proposals outlined by chancellor George Osborne earlier this week will see state backing for CTFs phased out by January 2011.
However, parents can still make contributions to an account if it is already open or will be able to set up one of the funds on their child's behalf if they have already received a government voucher.
CTF provider the Children's Mutual is urging mums and dads across the country to save as much as possible on behalf of their kids, as a new survey by the company found that 28% of people with older children have either remortgaged their home or plan to remortgage it to support their offspring.
The firm added that on average, parents have to find £30,000 to support their grown-up children between the ages of 18 and 30.
Children's Mutual chief executive David White said: "Saving for your child is a necessity not a nice-to-have."
All children born on or after September 1st 2002 are currently eligible for a CTF.
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