The Child Trust Fund is a government scheme introduced to encourage parents to save on behalf of their children. Depending on which way you look at the scheme it has both positives and negatives.
Those who are pro child trust fund claim that it helps people to save. This can be the case for both parents and children. Knowing that their parents are saving for them and that it works can get children to see the benefit. This can then encourage them to do likewise and continue to into adulthood. Many parents would not save on behalf of their children without the child trust fund. As they receive a CTF voucher and invest it for their newborn child it makes them think about the possibility of saving for their children. This may then encourage them to add the fund. (more…)