The Children's Mutual Reports Kids Unaffected By Recession This Christmas
on: November 24, 2009, 1:22 pm
The Children's Mutual
According to research by a leading Child Trust Fund (CTF)
provider, The Children's Mutual, children in the UK are set for a
bumper Christmas this year, receiving £5 billion of presents. With
generous friends and family set to spend 20% more than last year on
youngsters, it seems the recession is not impacting kids' stockings
The average UK child will receive £380 worth of presents this year, compared to £316
in 2008. In total, UK kids will have over £4 billion worth of toys and other
presents underneath their trees, along with £960 million in cash, with each child
receiving an average of £73. More than a quarter of lucky UK children will get £100
The Children's Mutual is urging parents to
take advantage of the generosity of friends and family this Christmas by asking them
to invest in a present that could last a lifetime.
David White, Chief Executive of The Children's Mutual, said: "It's great news
that the recession is not affecting kids' stockings this Christmas. However we are
urging parents to think about their children's futures and ask friends and family
to invest a portion of this money for the long-term."
The Children's Mutual also found that a lot of money is spent on presents that
often don't last for more than a couple of months.
David White continued: "Around £200 is spent on presents that won't make it past
Easter, but if this money was invested in a Child Trust Fund each year, it could be
worth £6,100* by the time it matures when the child turns 18. This way friends and
family can give a gift that could last well beyond the child's 18th birthday and
providing them with a nest egg for the future."
According to figures from The Children’s Mutual, top ups into Child Trust Funds get a timely boost at
Christmas with an average increase in ad hoc payments of just under 25%** during the
Child Trust Funds are designed to provide a tax efficient, long term savings vehicle for all eligible children (born on or after 1 September 2002). Each newborn
child receives a £250 Child Trust Fund voucher (£500 for low income families) 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
Commissioned by The Children's Mutual, The Parenting Matters Report questioned 2070
parents with children aged 5-15 in May 2009.
* Future projected values based on £200 being invested once a year (excluding the
government's contributions) for 18 years in a stakeholder CTF account and assuming
an investment return of 7% a year, and charges of 1.5% of the CTF account value each
** Based on ad hoc payments made into The Children's Mutual CTF accounts in Jan 09
compared to the rest of the previous year.
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 which 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 725,000
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:
22 Endell Street
020 7781 2376