One finance expert has recently stated that more and more parents in the UK have been redoubling their efforts to put aside cash for the future of their children in savings accounts.
In the wake of the government’s decision to remove the child trust fund, parents have begun to use savings products such as ISAs or fixed rate bonds to pick up the slack, according to Family Investments managing director Simon Hartshorn.
Mr Hartshorn stated that the abolition of the CTF has spurred parents to action in order to provide their children strong finance for when they grow up. Though the government savings scheme is now gone, the motivation for parents to save for their children remains, he added.
Mr Hartshorn stated that he would find it hard to pinpoint any other time in recent years that parents had engaged in a more rigorous savings strategy for their young ones. However the managing director stated that many parents may encounter rough seas soon, as the new Coalition government is slated to examine alternatives to CTFs in the immediate future, possibly leading to parents falling into a financial limbo.
Mr Hartshorn stated that he has heard rumours of the government offering a junior ISA savings product that will be backdated for any children that happened to be born after the beginning of this calendar year. However he admits that parents that want the best return on their investment for their children may make the wrong decision if they choose to hold on to their money, gambling that the junior ISA will materialise any time soon.
Mr Hartschorn’s words come on the heels of new research findings that indicate that 64 per cent of parents with children aged ten or younger have neglected to set aside any money at all for their children.