Parents urged to use CTFs for education
21/07/2006
Parents should top up their children's Child Trust Funds (CTF) to help cover the cost of their offspring's education, it has been advised.
According to investment house, F&C Asset Management, extra money is needed to help cope with the rising cost of university.
In 2005, the government introduced the CTF, which offers parents the chance to start a tax efficient savings account for their new children in the form of a £250 voucher.
F&C believes that parents should be thinking about the cost of their child's education from day one by putting financial plans into place.
Jason Hollands, head of communications at F&C, said: "If your child is eligible for a CTF you need to realise that the government vouchers alone will not be sufficient to build up a satisfactory pot of money to cover the costs of a university education in 18-years time.
"That means parents need to top the plan up, if at all possible, from their own pockets, which they can do to a maximum of £1,200 per year. It is of course also important to make the right investment choices within the plan."
Recent college-leavers will be receiving their A-level results in August, which will dictate whether or not they will be heading to university.
From the moment an individual knows where they are going to be studying, they must assess their finance, which normally involves taking out a student loan and opening up a student bank account.
According to investment house, F&C Asset Management, extra money is needed to help cope with the rising cost of university.
In 2005, the government introduced the CTF, which offers parents the chance to start a tax efficient savings account for their new children in the form of a £250 voucher.
F&C believes that parents should be thinking about the cost of their child's education from day one by putting financial plans into place.
Jason Hollands, head of communications at F&C, said: "If your child is eligible for a CTF you need to realise that the government vouchers alone will not be sufficient to build up a satisfactory pot of money to cover the costs of a university education in 18-years time.
"That means parents need to top the plan up, if at all possible, from their own pockets, which they can do to a maximum of £1,200 per year. It is of course also important to make the right investment choices within the plan."
Recent college-leavers will be receiving their A-level results in August, which will dictate whether or not they will be heading to university.
From the moment an individual knows where they are going to be studying, they must assess their finance, which normally involves taking out a student loan and opening up a student bank account.
