09/03/07 - Co-operative Insurance Helps Make Saving For The Future Childsplay
Leading financial services provider, Co-operative Insurance has experienced a very positive response to the Child Trust Fund initiative. Since the launch of the scheme in 2002, the number of ethical CTF accounts opened through Co-operative Insurance has reached over 26,000, with average monthly direct debits of £28 on top of the original £250 lump sum provided by the Government.
Zack Hocking, Head of Saving and Investments at Co-operative Insurance said: “We are delighted with the continued success of the Child Trust Fund and applaud the fact that the Government intends to use the CTF as a tool for teaching financial education in secondary schools.
“Initiatives such as this will stimulate children’s interest in saving for the future and encourage them to carry on their savings habit into adulthood.”
As a responsible insurer, Co-operative Insurance believes that the teaching of financial education should begin in the home as early as possible. With this in mind, we have put together a list of fun activities that parents can engage children in to understand finances in a practical way:
Take them to the supermarket and get them involved in choosing different varieties and brands. Set them a task to see if they can buy food to make a balanced meal for your household - but only allow them a budget of £5.
Saving for a ‘Rainy Day’
Ask your child to keep a diary and add up all the money you spend on them for things like after school activities and clubs, presents for friends’ birthdays, sweets etc. This will help them to realise the true value of money and understand about saving and budgeting.
Do your kids know what insurance is and why we need it? Talk about it in terms of something they can understand – eg. What if David Beckham couldn’t play football any more – does he have his legs insured?
Castles in the Sky
Have a look in the window of your local estate agency, look at the difference in prices and types of houses that are available – discuss the type of house that you would like to live in and the importance of saving for the future.
Value for Money
Look out for money-saving offers in magazines and newspapers – if they can work out how to save you money on family trips and shopping, perhaps they have earned a treat?
Stars in Their Eyes?
What do the kids want to be when they grow up? What do they want to do or buy with the money they receive from their Child Trust Fund? This can be a bit of fun but is also a chance for you to explain how much things like babies, weddings, and fast cars cost!!!
The UK’s first ethical stakeholder Child Trust Fund account, provided by The Children’s Mutual and distributed by Co-operative Insurance, has been developed in full support of Government efforts to ‘kick-start’ the savings of a new generation. Co-operative Insurance has joined forces with The Children’s Mutual, the UK’s only specialist in savings for children to offer a CTF stakeholder account which invests funds in the Co-operative Insurance FTSE4Good® Tracker Trust1.
Parents and guardians can apply for their child’s ethical CTF account through Co-operative Insurance by contacting 0845 600 1953 for an application pack or by visiting www.cis.co.uk
1"FTSE®", "FT-SE®" and "Footsie®" are trade marks of the London Stock Exchange Plc and The Financial Times Limited and are used by FTSE under licence
Note to Editors:
- ISDN facilities are available for broadcast media interviews.
- The Child Trust Fund distributed by Co-operative Insurance is invested in the Co-operative Insurance FTSE4Good Tracker Trust, a unit trust that tracks the FTSE4Good UK Index. To be listed on the FTSE4Good UK Index, companies must meet certain criteria including working towards reducing their impact on the environment. It excludes industries such as tobacco producers. The CTF will conform to stakeholder product requirements by:
- Having the appropriate exposure to equities for a long-term investment.
- Life-style switching – gradually moving out of equities and into safer investments, such as Government and cash deposits as maturity approaches.
- Capping charges at 1.5% per annum of the account’s value.
- Customers should be aware that their child’s account is placed in a fund that invests in shares in leading UK companies and they could get back less than they have paid in.
9th March 2007
For further information contact:
Co-operative Financial Services Press Office
Tel: 0161 827 5619
Fax: 0161 832 2751