Dec 13 2005
The consumer culture in Britain of 'buy now and pay later' is contributing to fewer people saving and a rise in personal debt - an attitude that needs to change, according to a new report.
Nationwide has published a report to tackle these issues early and educate youngsters. The Children's Savings Action Plan aims to change attitudes to saving and the way people manage their finances by drawing up a six-point plan.
Among the points is a request for the government to remove distortions in tax and savings that scare off parents from saving for their children.
The report also suggested that the £250 and £500 contributions to the Child Trust Funds (CTFs) plus any top-ups by parents are made index linked
Other suggestions include an extra CTF at ages 13-18 which is linked to the achievement of financial educational goals and also a government effort to encourage parents to make more CTF contributions.
Finally, the building society suggests that a clear target should be set by the government for the number of CTF vouchers to be deposited within three months and also education to make the concept of saving exciting for children.
Stuart Bernau, Nationwide executive director, said: "Nationwide calls for the government, industry and parents to work together to ensure that young people get the financial start in life they deserve.
"We believe Nationwide's Children's Savings Action Plan is the first step to addressing this issue. If all our recommendations are taken on board, today's children will be better equipped to deal with their financial futures."
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