Has your child got £1,000 stashed away you don’t know about?

The idea of your child having £1,000 stashed away that you don’t know about might seem a little farfetched, but it may well be the case for to 700,000 parents in the UK. It isn’t as suspicious as it sounds however; your little angel hasn’t been hoarding cash under the floorboards. Well, they might be, but that’s another matter entirely. Instead, the money will be sitting in a Child Trust Fund that may have been opened by the Government without your knowledge. How has this happened? The last Labour Government announced the Child ...

Savings: Have you raided your children’s savings?

Have you raided your children’s savings?Educating your children about careful financial management, whilst encouraging then to save, is widely accepted as part of the modern parent’s role. However, new research from Santander has shown that millions of parents might not be the best people to be educating their children about careful financial management. The research, conducted by Santander, has shown: 32% of parents have dipped into their children’s savings to pay for something for themselves Less than half, 49%, of parents replace the money they take from their children, indeed 15% admit to having no intention ...

Savings: Transfers from Child Trust Funds to Junior ISAs to be allowed…in two years

Pound LandscapeIt seems the Government has finally relented and will now allow transfers from Child Trust Funds to Junior ISAs. Over six million children have around £5 billion of savings in Child Trust Funds (CTFs), which were introduced by the second Labour government as a way of encouraging children and their parents to save. The coalition government replaced CTFs with Junior ISAs in 2011 although children with CTFs have so far not been able to transfer ...

Junior ISAs launched today, but beware if your children have a Child Trust Fund

The long awaited Junior ISA (Individual Savings Account) is launched today. The Junior ISA will replace the Child Trust Fund, which was introduced by the last government, and was aimed at producing a lump sum of money for children as they turned 18. Flop In many ways the Child Trust Fund was a flop with only one in five accounts being added to by parents or grandparents, leaving most accounts with just the government contributions. Child Trust Funds received a government contribution of £250 when a baby was born plus an additional payment when the child reached the age of seven. Unlike the Child Trust ...