What are Child Trust Funds (CTFs)?
They’re a tax-free wrapper for you to save or invest for your child where you can put up to £1,200 a year. The big boon was that the state also added a £250 voucher or £500 for families on low income when a child’s born, and again when the child reached seven. That means each child gets free cash of between £500 and £1,000. Though, of course, that’s all about to change. Why was it introduced? Labour’s aim was a touch of social engineering. The idea wasn’t just a hand-out, but also to teach children some financial responsibility and independence, as well as promote a “college savings fund” here in a similar way to the US. I must admit, I’ve never been that much of a fan, not the free cash, but the structure of the system. The main problem is that on a child’s 18th birthday, they gain full responsibility of the cash, which actually risked leaving parents in a difficult position. While it sounds harsh, when looking at an adorable baby wrapped in swaddling cloth, who knows whether your chi
