Child Trust Funds should be a family matter
Published On 10 January 2007
Discussing money matters remains taboo in most families, experts warn, even though this means many people lose out.Ahead of the government's first child trust fund (CTF) week, running from January 15th to 20th, Children's Mutual is urging families to discuss financial arrangements candidly, after their research highlighted a costly communication gap.
More than 85 per cent of grandparents claim they are willing to top-up a CTF and invest in their grandchildren's future.
However, more than half of parents surveyed said they were not comfortable asking for help, with over a third admitting the idea made them feel guilty.
David White, chief executive of Children's Mutual, urged families to remember that candid discussions about finances pay-off, reminding parents that grandparents are often eager to help.
Mr White said: "Money continues to be a taboo subject around the family dinner table and as a result, grandchildren stand to miss out on money for their future simply because their parents and grandparents are too embarrassed to discuss the subject.
"We're urging families to use the government's CTF week as an opportunity to bring the subject of money back to the dinner table."
Children's Mutual calculates that a child benefiting from regular grandparental contributions would be £14,400 better of at 18 years old than a child relying on parental top-ups alone.
Mr White added: "We're already seeing a wider interest in the CTF. In the weeks since Christmas the number of ad hoc cheque contributions we've received has increased by 300 per cent, showing that extended family and friends want to be involved in saving for children."
