Optimising the Benefits of the Child Trust Fund Voucher and the Helping Hand it Gives to Children
One of the obligations of parenthood is to attempt to ensure a financially sound future for a child. It’s something that lots of mums and dads are keen to aim for and that is a worthwhile thing to do. Unfortunately a significant proportion of those parents do not realise the saving opportunities that are available to them in the UK. Be in no doubt that if they neglect to invest in the Child Trust Fund then they are genuinely missing a trick.
So what in essence is a Child Trust Fund and what benefit does it give to mothers and fathers attempting to save for a child? Fundamentally the Child Trust Fund is a savings account for youngsters that parents and other family members and friends can add too. No one is permitted to remove the money and when the child reaches 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 Chancellor created when the scheme was unveiled that make investing in it a really appealing proposition. The cash that is in the Fund is allowed to grow free of Income and Capital Gains Tax so as a means of long term investing it is a great way to build up savings.
Perhaps the most extraordinary part of the scheme is that the Government gives every newborn child a voucher that is worth two hundred and fifty pounds. This voucher can be used to start a Child Trust Fund and over the course of time the money can build so that when it matures it can 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 a long term investment that mums and dads should be aware of and take full advantage of.
Go here for more information about the Fund.
