The Children's Mutual, the leading Child Trust Fund provider, has revealed new research* that suggests parents could be facing a bill in excess of £100,000 if their children grow up to fulfil their career ambitions.
The annual 'What I Want to Be' poll revealed that among five, six and seven year-olds, becoming a teacher, doctor or vet are the jobs of choice. The Childrens Mutual warned parents to start saving now as the latter two could cost £116,000 and £117,000 respectively in 18 years time.
Tony Anderson, Marketing Director of The Children's Mutual, said: "Parents tell us their young children are highly ambitious and that they, as parents, fully intend to help them fund their futures. But the sums of money the top careers command could cause financial nightmares for families who don't plan ahead. While the Coalition Government has announced its plan to significantly reduce payments into Child Trust Funds from 1 August 2010 and to abolish the scheme altogether for new babies born from 1 January 2011, the reality is that the cost of children's futures hasn’t changed. We believe that the only way for parents to financially manage these costs is by saving regularly over the long term and are urging them to continue doing so."
The Children's Mutual questioned over a thousand parents about what their children said they wanted to be when they grew up and found that the majority of today's children are looking for a career which requires further training and education. The top careers of doctor, teacher and vet have featured in the 'What I Want to Be' poll for the last three years, demonstrating that children consistently aspire to careers that will need higher education.
According to The Children's Mutual, 93% of parents of today's young adults are still funding their children, and the expert in long-term savings for children does not anticipate this changing. The Children's Mutual is urging parents to continue saving regularly over the long term rather than having to face finding such large sums of money in the future.
Launched in 2005, Child Trust Funds were designed to provide a tax efficient, long term savings vehicle for all eligible children. Eligible newborn children (born on or after 1 September 2002) received a £250 Child Trust Fund voucher (£500 for low income families) from the Government when their parents registered for Child Benefit. The Government then makes a second contribution of £250 (£500 for low income families) when the child reaches seven. Parents, family and friends can all then top up the CTF and add to this account up to a maximum value of £1,200 each year. The proposed changes to the CTF will mean that for existing customers the accounts remain as before, with an annual tax-efficient top up allowance of £1,200, albeit without the Government's additional contributions from 1 August 2010.
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Notes to editors
*The research from The Children’s Mutual was undertaken by BDRC during March 2010 and polled 1200 parents of children aged between five and seven
Further details can be found at: http://www.thechildrensmutual.co.uk/about-the-childrens-mutual/media-centre/2010-media-releases/bill-to-fund-a-childs-future.aspx
About The Children's Mutual - Home of the Child Trust Fund
The Children's Mutual's mission is to help parents, grandparents, family and friends fulfil their hopes for today's children. The Children's Mutual is the only UK company th
Katie Mallett, Consolidated PR, 22 Endell Street, London, WC2H 9AD, 020 7781 2376
