Children who were born on or after 1st September 2002, and who are eligible for Child Benefit, will qualify for a specially designed savings scheme set up by the government. This scheme, known as the Child Trust Fund (CTF), gives children a series of payments from the state to help them out financially in the future.
Why was the Child Trust Fund Established?
The payments given under the scheme are meant to be invested on behalf of children to give them a financial boost when they reach the age of 18. The system was also set up with a view to allowing other family members to supplement the state investment if they wished or were able to do so.
Another aim here was to encourage children to become involved in the savings process by giving them an account of their own. It is hoped that this will help children start off life with an inclination towards saving and a better financial understanding. So, how do Child Trust Funds work?
