GOV’T GIVES 7 YEAR OLDS £250 CHILD TRUST FUND TOP UP NEW RESEARCH RELEASED TODAY REVEALS THAT THE ECONOMIC DOWNTURN IS HAVING A POSITIVE EFFECT ON OUR CHILDREN’S SAVING HABITS

Today (1st September), the oldest members of the Child Trust Fund (CTF) Generation are turning seven, and as a result they will receive an additional £250 top up payment from the Government into their CTF’s.  To coincide with the first top-up payments The Children’s Mutual’s ‘Turning Seven’ report*, has been released today and reveals that two thirds of parents are optimistic that the current economic hardship is having a positive impact on their younger children. Almost half (47%) of their seven year olds have already saved up for something they want, and 83% of UK parents now make their children ‘earn’ pocket money.

FEELING THE SQUEEZE

The research also shows, the current recession is developing a younger generation with a more responsible attitude towards money – the likes of which has not been seen since the end of the Second World War. Parents of today’s seven year olds have revealed they have a much more open relationship with their children than they did with their own parents and are more likely to share the financial stresses they have been experiencing due to the recession with their children, and almost three in five (59%) parents are saying ‘no’ to their child more frequently in regards to spending.

THE 7 YEAR OLD APPRENTICE

In response to this, children are becoming ‘little entrepreneurs’, doing what they can around the house to earn extra money. Some children even save money they’ve been given to spend on school trips and fetes to give back to their parents or put into their piggy banks. Almost a third (30%) of parents feel their children understand that money needs to be earned.

TURNING SEVEN

From today seven year olds will be receiving an additional £250 top-up payment into their Child Trust Funds’, which is a significant contribution from the Government. It is today’s seven year olds that will become the vanguard of a generation when their CTFs mature in 2020.

THE CHILDREN’S MUTUAL

The Children's Mutual’s mission is to help parents, grandparents, family and friends fulfil their hopes for today's children, and specialises exclusively in family-focused finance products. It is the only company that specialises in children’s trust funds, with 700,000 accounts, and has won The Moneyfacts Award for Best Child Trust Fund Provider every year since its 2006 launch.

THE TURNING SEVEN PAYMENT

On 22 March 2006 the then, Chancellor Gordon Brown MP, announced in his Budget that all children eligible for the Child Trust Fund will receive a further Child Trust Fund payment at age 7 of £250 with children from lower-income families receiving £500.

Eligibility for the second payment is the same as that for the initial payments. It is being given to every child born on or after 1 September 2002, living in the UK and being the subject of a Child Benefit award on the child’s seventh birthday. Children in families who qualify for full Child Tax Credit with an income below the threshold of £16,040 on the child’s seventh birthday will qualify for the higher payment of £500

For more information please visit www.thechildrensmutual.co.uk/research

Primary Times is a What’s on, Where to Go site aimed at Primary Aged children, their families and teachers.  In addition to the competitions our site has a wealth of events listings, handy editorials for parents, children and teachers, holiday information, reviews of book, films, etc and a host more.  So please take the time to visit other pages of our site by clicking on the highlighted links in this text.