Child Trust Fund parents "crying out" for information says The Children's Mutual

EMBARGO: 00.01 September 13, 2003 Child Trust Fund parents "crying out" for information says The Children's Mutual Research among parents of the first eligible Child Trust Fund recipients shows parents plan to build on government allowance but only with help The vast majority of parents of the first eligible group of Child Trust Fund recipients, children born from September 2002, are planning to use the Government's Child Trust Fund allowance to kickstart extra saving for their child's future, according to research commissioned this week by The Children's Mutual, but only if they are supported with help and information. The research, the first undertaken amongst parents of children earmarked to receive the Child Trust Fund, reveals that 79%(1) of parents with children aged one and under are likely to top up Government monies to help prepare their children financially for the future. However, the research also shows, overwhelmingly, that 92% of respondents want to receive more information on the Child Trust Fund and that surprisingly, about one third (34%) of respondents were not even aware of the Child Trust Fund. David White, The Children's Mutual chief executive, said: "We first recognised that consumer demand for more information on the Child Trust Fund existed after receiving an increasing number of requests from parents wanting to know what it meant for their children. "Our research has confirmed that parents with the first children who qualify for the Child Trust Fund are eager to receive more information and find out how they can plan for their children's future. They want help and fortunately, The Children's Mutual is in a very good position to help them," Mr White said. The Children's Mutual is launching a Child Trust Fund information service with the pledge to provide parents with information about the Child Trust Fund as it comes to hand. "The promise we are making to parents is that if they provide us with their contact details we will send them information updates on the Child Trust Fund each time there is a development," Mr White said. Parents wanting to register for Child Trust Fund updates from The Children's Mutual can do so by logging onto www.thechildrensmutual.co.uk/child or by phoning The Children's Mutual Child Trust Fund line on 0500 800 840. Mr White said the Child Trust Fund would mark an important turning point in the future of the UK's saving habits and would provide a catalyst for parents and other family members to save for their youngsters. But it's clear that there will be a lot of work to do to make sure parents have the help, information and support needed. Without that, the Government money might never be topped up - a real danger. "Saving for children works. We know that youngsters who have had our Baby Bond savings plans put the money to good use at age 18, in a variety of ways from opening their first bank account to helping fund university education," he said. He said the key for families was to continue to top up the initial Child Trust Fund allowance. "Combining it with family members saving £50 a month between them over 18 years could amount to £18,020(2). This represents half the projected cost of higher education, 59% of the cost of starting a new business, or 75% of the deposit on a first home when the child reaches 18", Mr White said. Prediction for costs in 2021: Current Cost Cost in 18 years(3) 3 years at university(4) £23,150 £36,100 Starting a new business(5) £19,515 £30,437 Deposit on first home (including £15,434 £24,072 fees)(6) For further information please contact: David White Celina Maguire/Julia Le/Steven Proud The Children's Mutual Consolidated Communications Tel: 01892 707362 020 7208 2710/020 7287 2087/020 7208 2704 Mobile: 07860 397769 Out of hours: 01892 724816 Notes to Editors: The Children's Mutual mission is to help parents and grandparents fulfil their hopes for today's children. We offer a range of savings plans, which are specially designed to do this, by combining the benefits of our 122-year heritage as a trusted mutual society with the latest financial expertise. The Children's Mutual is a trading name of the Tunbridge Wells Equitable Marketing Group and only provides information about the products of that Group. Baby Bond® is a registered trade mark of Tunbridge Wells Equitable Friendly Society. Please note that The Children's Mutual has a large database of case studies on children's savings and higher education funding. The Children's Mutual only provides information about products of the Tunbridge Wells Equitable Marketing Group. Research conducted from September 4, 2003 to September 6, 2003 by The Telephone Research Centre among 252 UK parents with children born since September 2002. The figures are only illustrative. If you take advice on this subject, your needs will need to be confirmed before a recommendation can be made. Key features, including a projection which is personal to your circumstances should be provided if a recommendation for an investment product is made. We have assumed that the Government endowment will be £250 plus a top up of £50 made at age 7. The figures shown assume inflation at 2.5% a year for 18 years. National Union of Students press pack 2003/2004. Estimated average expenditure (for students resident in England and Wales studying outside of London) of £7,523 for academic year 2003/2004, including tuition fees at a maximum of £1,125. Assumes inflation at 2.5% a year during the course. Welsh Students may be eligible for a grant (Sept 02). Current Government proposals indicate that tuition fees in some universities could rise from April 2006. Barclays Bank (February 1999) average of £17,680. A 10% deposit on the average home with associated fees. Moneywise UK average house price for June 03 of £130,312. Associated fees from www.ftyourmoney.com (Aug 03). ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/09/10/20030910BIT01010/wkr0001.doc http://www.waymaker.net/bitonline/2003/09/10/20030910BIT01010/wkr0002.pdf