Last updated at 12:32, Monday, 26 April 2010

Advertising feature. If you are thinking about a child trust fund as a potential investment option, it makes sense to get started early. That way, you can hope to make the most of the fund's potential in time for your child's 18th birthday.

Provided your son or daughter was born on or after 1st September 2002, they'll qualify for the government's £250 voucher designed to help you on your way to saving towards your child's future. If your child doesn't have such an account in place within 12 months, one will automatically be opened for them.

Putting aside a nest egg for your children gives them a great start. Youngsters face a whole host of expenses when they're starting out in life and they're not likely to get any less in the years to come. Recent research shows that a £9,371 (1) layout for a first car in 2010 could be closer to £14,616 by 2028. If they decide to take a gap year, the current average cost of this - estimated to be around £3,500 - might rise to approximately £5,458 (2) during this period. University costs and fees could go up from a total of £32,538 to £50,748 (3) and putting down a deposit for their first home might be as much as £25,106 (4). Should they decide to get married the cost could be as much as £28,853 (5). A Child Trust Fund could help give them a head start.

You can make regular payments into the fund from as little as £10 per month and the good news is that friends and family can add to this up to the £1,200 annual allowance too. As with any investments of this type, while there may be the potential for good returns, values can go down as well as up so your child may get back less than originally invested. However, with a government voucher of £250 or more and a second credit of at least £250 at the age of seven, there are plenty of reasons to head to the Halifax website where you can check out our child trust fund and other investments.

Halifax's current range of products offer a choice of investments at differing levels of risk. Why not make use of our Risk Profile Tool, which helps you to assess your attitude to risk. You can then compare our wide range of ISAs and funds online and, if you need any further information, make an appointment to see one of our financial advisers.

Halifax offers a complete range of bank accounts and personal investment products. Whatever you're looking for: from savings to personal loans, a mortgage or a credit card, at Halifax we aim to give you a little extra help. We even offer help with your home insurance and travel insurance too.

(1) Based on basic models with no added extras: Vauxhall Corsa Hatchback 1.0i 12v Active 3dr £11,025, Peugeot 107 1.0 Urban Hatchback £8,595, Citroen C1 1.0i Splash 3dr £8,495. Cost for new shows a middle value of £9,371 for these three models (www.whatcar.co.uk). All projections assume inflation at 2.5% a year for 18 years. All figures quoted on 12th August 2009.

(2) www.nus.org.uk/en/studentlife as at 3rd September 2009. Cost broken down by taking top-line figure from average cost of gap year travel - £3,000 - £4,000. Cost break down as follows: around £1,500 charge by gap year organiser, £1,000 for a round the world ticket and about £1,000 for visas, equipment and spending money. All projections assume inflation at 2.5% a year for 18 years.

(3) £50,748 – based on student tuition fees quoted for three academic years of £3,225 per annum. (www.direct.gov.uk) and living expenses for study outside London of £7,621 (www.fairinvestment.co.uk). All projections assume inflation of 2.5% a year for 18 years (August 2009).

(4) £16,097 – based on a 10% deposit for an average house price of £160,973 according to Halifax House Price Index (August 2009) with inflation applied at 2.5% a year for 18 years.

(5) www.weddingsday.co.uk as at 3r September 2009. All projections assume inflation at 2.5% a year for 18 years.

First published at 11:18, Monday, 26 April 2010
Published by http://www.timesandstar.co.uk