So what is this Child Trust Fund that all the talk is about? A surprisingly sparse number of parents appear to realise that all new babies get a free £250 voucher from the the State to place in a Child Trust Fund.

This voucher can be invested in any one of three varieties of CTF account, Stakeholder - a shares-based account that switches into cash, a savings account or a shares account. It is a great opportunity to save for the future life of a youngster.

Scottish Friendly is a designated provider of the child trust fund. The State is keen for the public to have access to Stakeholder accounts and this is the sort of account that we provide. One of the highights of saving for children is that anyone - parents, grandparents, aunts and uncles, friends - may contribute to the Fund to a top limit of £1,200 per year to help increase the Fund (once added, this money is not allowed to be withdrawn). Only children born on or after 1st September 2002 are entitled to start up a Children Trust Fund.

If you have older kids who were born before the above-mentioned date who are not eligible you could contemplate investing for them with a Child Bond - it's a tax-free savings plan aiming for long-term growth.

The task of raising children is an arduous one but with some foresight and advance planning it is possible to ease the financial strain in the future. Mothers and fathers and other family members can play an important role in contributing funds to the Fund until the kids reach adulthood and have to begin making their own way in life. As we all know life can be tough and any help will certainly be appreciated.

It is undoubtedly the case that saving for your son or daughter is a rewarding means of protecting them from possible future credit crunches.

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