The Children's Mutual Announces Seven Year Olds To Lead New Savings
Culture
Released
on: September 1, 2009, 6:54 am
Author: The
Children's Mutual
Industry: Financial
The
Children's Mutual's 'Turning Seven' report has revealed that the
recession will have a positive impact on the savings habits of
today's seven year olds. According to the leading Child Trust
Fund provider, 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.
'Turning
Seven', which delves into the financial attitudes of seven year
olds and their parents, found that two thirds of parents polled
insisted that their seven year old children were better informed
about finances than they were at the same age. 47% also revealed
their seven year olds have already saved up money for something
specific, such as a computer game. The report highlights that
the current generation of seven year olds will be much more pragmatic
about money.
Two
thirds of parents feel that their seven year olds now understand
that money 'does not grow on trees' and are optimistic that the
economic hardship currently being experienced is a positive for
their children, with a third of parents believing it will make
their child more astute and responsible with money. Indeed, 83%
of UK parents now insist that their children 'earn' their pocket
money.
David
White, Chief Executive of The Children's Mutual, said: "We
are all acutely aware that the recession has put many people in
difficult financial situations, but what is surprising is that
there has been a positive impact through prompting reflection
and encouraging a change in attitude and behaviour. We know that
many families are feeling the squeeze, but encouragingly, our
report demonstrates that parents and children are creating a 'positive
austerity' and are using the downturn as an opportunity to educate
their children about the value of money which ultimately could
alter savings habits in the UK from the ground up."
The
'Turning Seven' report has been released today to coincide with
the oldest members of the Child
Trust Fund Generation turning seven, and as a result receiving
an additional £250
top up payment from the Government into their CTFs.
Child
Trust Funds are designed to provide a tax efficient, long
term savings vehicle for all eligible children. Each eligible
newborn child (born on or after 1 September 2002) receives a £250
(£500 for low income families) Child
Trust Fund voucher from the Government when their parents
register for Child
Benefit. The Government will make a second contribution of
£250 (£500 for low income families) when the child
reaches seven and is considering a third in the child's teenage
years. Parents, family and friends can all then add to this account
up to a maximum value of £1,200 each year.
- Ends -
Notes to editors
The 'Tuning Seven' report was commissioned by The Children's Mutual
and undertaken by Next Big Thing in July 2009.
About
The Children's Mutual - Home of the Child Trust Fund
The Children's Mutual's mission is to help parents, grandparents,
family and friends fulfil their hopes for today's children. The
Children's Mutual is the only UK company that specialises in long
term savings for children and is now the choice of 1 in 4 parents
for their child's Child Trust Fund, with more than 700,000 accounts.
This expertise has led several financial institutions and family-focused
high street retailers to choose The Children's Mutual as their
stakeholder Child Trust Fund provider.
The
Children's Mutual PR contact:
Katie Donlan
Consolidated PR
22 Endell Street
London
WC2H 9AD
020 7781 2376
2012
