Parents should save for their children's future

Despite cuts to child trust funds, parents have been urged to find the best savings interest rates and put money away for their children's future.

According to CashQuestions.com, parents should still look to save for their children despite the lack of government support.

Annie Shaw, editor of CashQuestions.com, said that parents, godparents and grandparents should be saving for their children.

She added: "It is very important to keep that going and there are a number of places that you can go to save in the meantime."

The comments follow the research carried out by the Institute for Public Policy Research ippr which found that tens of thousands of children in the UK will miss out on a vital nest egg when the child trust fund is abolished on New Year's Day.

Ms Shaw added that there are plans for the government to introduce a baby ISA, which is a tax-free savings account for young people, providing parents with another saving option for their children.
 

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2010-12-23 11:48:25 © Moneyextra.com