CTFs are like buying shares with a credit card

The Motley Fool proposes alternatives to Child Trust Funds

David Kuo, Director at popular financial website The Motley Fool - Fool.co.uk, says: "It comes as no surprise that Child Trust Funds (CTFs) will be axed in the first round of cuts announced by the new coalition Government.

"Whilst investing for the long term makes perfect sense, it is inconceivable that any responsible government can justify spending around GBP300m a year on children's investments for tomorrow when the nation is nursing a huge budget deficit today.

"To continue with Child Trust Funds is tantamount to buying shares with a credit card.

It is illogical, irrational and irresponsible.

"Parents who are looking to help their children plan a secure financial future can still do so through children's savings accounts or, better still, through stakeholder pensions.

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