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SAVING FOR CHILDREN 25Child Trust Funds – the end?First, let’s be clear about the future ofthe Child Trust Fund (CTF). In August,the Government cut all CTF contributionsat birth from £250 to £50, and stopped itsadditional contributions previously paid intothe CTFs when the child turned seven. Andfrom 1st January 2011, it will no longercontribute anything to CTFs.However, although the scheme isstopping – and we have closed forbusiness on new applications forour own Ethical Child TrustFund (ECTF) – all existingCTF accounts will still berunning as usual.So, if you have achild or grandchildwho already hasan ECTF withus, you can still easily top up the account,either with lump sum payments of £50 ormore, or by regular direct debits from just£5 a month. The fund will continue to bevalid until the child’s 18th birthday, withno withdrawals permitted. All CTFs willalso continue to benefit from tax efficientinvestment growth (although tax rulesmay change).Investing ethicallyOur ECTF is different to many other ChildTrust Funds in that it aims to only investin socially and environmentally friendlycompanies. Enterprises it will not considerinclude those substantially involved inactivities such as animal testing, gambling,intensive farming, nuclear power, tobaccoand water pollution.“The ECTF really strikes a chord withparents and grandparents, in that it’sabout investing responsibly for the future,”says Foresters Chief Executive Kevin Dann.Plus, earlier this year it was named as a‘Best Buy’ product in a survey by EthicalConsumer, the UK’s leading alternativeconsumer magazine.You also think that investingethically is becoming moreimportant. In a recent surveywe carried out, 58 per centof those asked expectedit to continue to grow in popularity, and45 per cent said the Government shoulddo more to encourage citizens to invest inethical products.New – the Ethical ChildSavings PlanSo you should be pleased to hear that wehave just launched a new product thatpromises to offer flexible saving options fora child’s future – and has the same ethicalprinciples as the ECTF.The Ethical Child Savings Plan (ECSP)lets you invest between £15 (online only)and £25 per month for a fixed term ofbetween 10 and 25 years. It is similar to ourChild Tax Exempt Savings Plan, but aimsto invest only in ways that do not harm theenvironment, people or wildlife.The account aims to grow the cashlump sum that the child will receive byadding annual and final bonuses (althoughbonuses cannot be guaranteed). Andwhoever opens the account can choosewhen they want the child to receive themoney, from age 16 onwards, subject to aminimum 10-year term*.So, with the ECSP, not only will the childreceive a financial boost to help themon their way in life, but you can also restassured that you have done your bit to helpthe world a little bit more at the same time.*Please remember that inflation will reduce what the child can buy in thefuture. You should also be aware that they may not receive the fullamount saved, dependent on the performance of theethical section of the With Profits Fund.Money-saving tips fromour Foresters FriendsHost a joint birthday party – this is especially good withlittle ones, who seem to want to invite their whole class to theirparty. There is generally another child in the same class with abirthday close enough to your own child, so you can split the cost ofhiring a venue and entertainment. DoreenAddyour ownmoney-savingtip to the ‘Money’forum onwww.forestersfriends.co.ukRather than spending a fortune on storage for children’s toys, save large cardboard boxes andlet the children decorate them any way they choose (with stickers, colouring pens, glitter, cut-out pictures etc). And,before you recycle junk mail or paperwork that you no longer need, sift out any papers that are blank on one side– after all, when toddlers want to scribble or draw, any paper will do. E RollsHomemade cards and gifts are a particular delight. You can save a fortune and keep youngstersoccupied by using up old paper, cards, stickers and scraps of material to turn into highly individual birthdayand Christmas cards. Similarly, simple-to-make biscuits, chocolates and homemadecrafts will always bring a smile to doting family members and friends. CherylTeach older children they don’t get something for nothing. Pocketmoney should be a reward for completing chores and other jobs around the house andgarden. And take them to the local library as soon as they show an interest in books. Thissaves a fortune – as long as you don’t forget the book return dates! SteveTo find out moreabout the Ethical Child Savings Plan08000 214 523quoting ‘Autumn 2010’www.forestersfriendlysociety.co.ukSee the directory on theback pagePhotolibrary