Saving for children's futures 'vitally important'

Parents should do all they can to continue saving for their children's futures, it has been claimed.

Kate Moore, head of savings and investments at Family Investments, said it is "very important" to continue putting money away, despite the financial difficulties still being experienced in some households.

She claimed that the majority of people are keen to continue saving, with those who cut back during the recession doing so only as a temporary measure.

"We have seen that this year, more people are starting to voluntarily top up the savings accounts for their children. We have seen a real change," Ms Moore stated.

However, she expressed concern that the government is considering abolishing child trust funds, something which will reduce the level of choice for those wishing to save.

"Things like tax credit and child benefits are now under question as well which means that for people who would have used a bit of discretionary saving from putting it away for their children's future, are now having to use their savings to pay for day-to-day things related to the child," Ms Moore said.

According to Scottish Widows, 12 per cent of parents say they have been saving more for their children since the economic downturn.

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2010-06-17 13:43:19 © Moneyextra.com