The Children’s Mutual urges New Year quitters to invest in their family’s futures
Stubbing out your 5 a day habit could help you give your child £15,5001 on their 18th birthday.
Leading Child Trust Fund provider, The Children’s Mutual is encouraging all parents who decide to give up smoking as their New Year’s resolution to consider putting the money that they will save towards their children’s futures.
According to figures from the NHS, smokers dropping a five a day habit will save on average £40 a month. If this amount were in turn invested each month into a child’s Child Trust Fund it could grow to £15,500 when the fund matures on the child’s 18th birthday. The monthly saving raises to £158 for those quitting a 20 a day habit. This could fully fund a CTF with some left over each month.
While the NHS records numerous health benefits associated with giving up smoking, the potential to improve a child’s future financial health can also be added to the list of reasons to quit.
Marketing Director of The Children’s Mutual, Tony Anderson, comments; ‘People often view the New Year as a time to take stock and we know that many use it as an opportunity to make promises to themselves and others – but these are not always easy to keep. What better incentive could there be for sticking to a resolution than the knowledge that, as well as improving your own long-term wellbeing, the commitment could further benefit your children as they enter adulthood in the years to come.’ This projection is based on £40 being invested each month for 18 years in a Stakeholder Child Trust Fund account, alongside the Government’s initial £250 voucher and another £250 voucher at age 7, with yearly growth at the FSA mid-rate of 7% and charges of 1.5% of the account’s value each year. These figures are not guaranteed, shares can go down as well as up and the eventual lump sum could be more or less than indicated.
 Maximum £1,200 can be paid into a CTF each year.