Jan 30 2009
The cost of bringing up children is on the increase, figures released this month revealed.
Produced by LV=, they suggested that parents can spend almost £194,000 on bringing up a youngster until they reach the age of 21. This represents a rise of four per cent since the company conducted its last survey in December 2007 and is 38 per cent more than when the cost was first calculated in 2003.
Responding the figures, LV= Group chief executive Mike Rogers said: "Every parent knows how their hard-earned savings can dip thanks to eye-watering education and childcare costs."
http://www.savingforchildren.co.uk/Cost-of-raising-a-child-revealed--181_1_18991321.html
In order to help parents cope with the costs, wider families can help by saving for children, The Children's Mutual claimed.
Making its comments in the wake of the LV= research, which also found that nearly a fifth of the cost of child raising goes towards university education, the firm said that family members can contribute to child trust funds (CTFs).
Chief executive of The Children's Mutual David White said: "The CTF was introduced to give every child a financial asset when they reached 18 and it is already changing the nation's savings habits."
He went on to encourage parents to ask family members to consider contributing to such funds.
http://www.savingforchildren.co.uk/Families-should-help-parents-save-for-children--181_1_18993473.html
The expert also recently said that CTFs can help pay for such things as getting on to the property ladder.
Mr White added: "Conversations with our customers show that the current economic gloom is focusing parents' minds and many believe that now is a good time to start actively saving for their children's futures."
http://www.savingforchildren.co.uk/Expert-urges-families-not-to-miss-out-on-CTFs-181_1_18970146.html
In order to encourage those saving for children to invest in CTFs, ASDA announced this month that it is offering a range of incentives to new customers, including money-off vouchers.
It also revealed it is to give out a free Family Money Guide and a copy of the ASDA Little Things Booklet.
Commenting on the move, the firm said it is designed to encourage parents to start building up a "healthy lump sum" for when their child reaches the age of 18.
http://www.savingforchildren.co.uk/Firm-offers-incentives-over-CTFs-181_1_18984374.html
Meanwhile, figures cited recently by the Treasury suggested that the popularity of CTFs as a means of saving for children remains strong among parents.
A total of 4.01 million such accounts are said to have been opened since the start of the scheme in April 2005.
The Treasury's Ian Pearson said: "The introduction of CTFs is a great achievement that will ensure that every child in our country has their own financial asset when they reach 18."
http://www.savingforchildren.co.uk/4m-CTFs-set-up--181_1_18967608.html
