Smart Things to Do with the Child Trust Fund Voucher and the Helping Hand it Gives to 18 Year Olds
One of the obligations of being a parent is to try to ensure a good future for a child. It’s something that a lot of mums and dads are eager to aim for and that is a worthy thing to do. Regrettably a not inconsiderable amount of these parents do not realise the saving opportunities that are available to them in the UK. Make no mistake if they fail to use to invest in the Child Trust Fund then they are undoubtedly missing a trick.
So what in essence is a Child Trust Fund and what advantage does it give to mums and dads trying hard to save for the children? Basically the Child Trust Fund is a savings account for children that parents and other family members and friends can contribute too. No one is allowed to take out the money and when the child gets to 18 he or she alone can withdraw it and do with it as he or she wants.
There are a number of inducements that the Government created when the scheme was unveiled that make investing in it a very attention-getting proposition. The cash that is in the Fund is allowed to grow free of Income and Capital Gains Tax so as a long term investment it is a highly-effective way to build up savings.
Perhaps the most remarkable part of the scheme is that the Government gives every newborn baby a voucher that is worth two hundred and fifty pounds. The 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 could be used to pay for the later stages of the young adult’s education at college or maybe even at University.
On The Whole the Child Trust Fund is something that all parents 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.
