Using the Child Trust Fund Voucher and the Helping Hand it Gives to 18 Year Olds November 9, 2009
Posted in : Economy + Finance , trackbackOne of the obligations of being a parent is to attempt to procure a financially sound future for a child. It is an objective that many mums and dads strive to aim for and that is a praiseworthy thing to do. Unfortunately a number of these parents do not understand the saving opportunities that are available to them in the United Kingdom. Make no mistake if they neglect to invest in the Child Trust Fund then they are really missing a trick.
So what exactly is a Child Trust Fund and what benefit does it give to mothers and fathers attempting to save for the children? Fundamentally the Child Trust Fund is a savings account for kids that mums and dads and other family members and friends can contribute too. No one is entitled to draw out the money and when the boy or girl gets to 18 he or she alone can remove it and do with it as he or she wants.
There are a number of incentives that the Government created when the scheme was set up that make investing in it a really appealing proposition. The money that is in the Fund is allowed to grow free of Income and Capital Gains Tax so as a long term investment it is an effective way to build up a lump sum.
Perhaps the most noteworthy part of the scheme is that the Government of the United Kingdom gives every newborn baby a voucher that is worth 250 pounds. This voucher can be used to begin a Child Trust Fund and over the course of time the invested money can build so that when it matures it can potentially help to fund the later stages of the young adult’s education at college or possibly even at University.
All in all the Child Trust Fund is a long term investment that mums and dads should be aware of and take full advantage of.
The Scottish Friendly are accredited providers of the Fund so visit their site for more information about the Fund.
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