Child Trust Fund turns seven

From today, children turning seven will receive their second government payment of £250 into their Child Trust Fund account (CTF).

The Trust Fund scheme awards £250 for all children born on or after 1 September 2002, with lower income families receiving £500.

In March 2006, Chancellor Gordon Brown announced in the budget that at the age of seven, a further payment of £250 or £500 would be made.

Coinciding with the second payment to the first generation of children, a new report, Turning Seven, has just been released by CTF provider, The Children’s Mutual.

Examining the attitudes of seven year olds and their families, the report found that two thirds of parents felt their children were better informed about finances than themselves at the same age.

Parents are using pocket money to teach children its value by making them earn the cash and 59 per cent of parents have started to say no to their child when it came to spending.