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For
Immediate Release: Friday 12 September 2003
SAVING FOR CHILDREN
A guide to investing on
behalf of children through investment funds
Parents and grandparents often want to
know how they can help to provide a child with a financially
secure start in life.
This updated IMA fact sheet explains
how they, or anyone thinking of saving on behalf of a child,
can help. It outlines the different options available –
including children’s bonds and stakeholder pensions, as well
as savings accounts and of course, investment funds. It
also explains the tax aspects of saving for children and the
use of bare trusts.
It shows that, over the long term,
investment funds can outperform other forms of saving,
helping a child for example to buy their first car, find a
deposit for their first mortgage, or get through
university. For example, saving £50 a month in an
investment fund over the last 18 years would have delivered
a total sum of £22,293, compared to £13,864 in a building
society account.
Richard Saunders, IMA Chief Executive,
said:
“Early contributions to a
child’s savings can make a huge difference, providing them
with a valuable gift for the future. It can also be an
important early step in introducing young people to the
benefits of saving, which they can continue through to
retirement. Investment funds are a flexible means of
investing that access the growth potential of the stock
market.”
Readers interested in obtaining a free
copy of the
Savings for Children fact sheet
can call the
Unit Trust Information Service on 020 8207 1361.
IMA’s publications can also be found by visiting the IMA
website at
www.investmentuk.org (IFA’s interested in obtaining
multiple copies should call Selina Staines on 020 7831
0898).
Source: IMA, based on the average returns from a
building societies savings account (£2500 min) compared
to monthly payments of £50 per month into an investment
funds savings plan with all net income reinvested.
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Ends -
For
further information, please contact:
Helen Stephenson,
Communications Officer, IMA,
020 7831 0898
Selina Staines,
Communications Co-ordinator, IMA,
020 7831 0898
65
Kingsway London WC2B 6TD
Tel:
+44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975
www.investmentuk.org
Investment
Management Association is a company limited by guarantee
registered in England and Wales Registered number 4343737.
Registered office as above.
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