Money
Managing your money
KidStart - a financial boost for your children and grandchildren
Saving a nest egg for children and grandchildren has never been more important with the escalating costs of bringing up a youngster, writes Holly Thomas
A new scheme - KidStart - can do just that - without costing you penny.
It is a free savings club which earns cashback on your shopping from more than 200 different shops.
The scheme has done deals with stores including Mothercare, Marks & Spencer and even the Apple Store, so you can make money on your purchases with them.
Any cash earned is automatically paid into a bank or building society savings account for a child, or can even be directed into their child trust fund account.
While the credit crunch is on and the cost of living soars - from household bills to a bag of pasta - now is the time to take advantage of reward schemes which give you something back.
Members who sign up to KidStart simply need to nominate the child's account where earnings can be directed which means parents, grandparents, other relatives and friends can join and help save for the future of a loved one, simply by doing their regular shopping.
It pays cash back on shopping of up to 20 per cent on whatever you spend, although you will need to change the way in which you shop.
Cashback is only paid when you shop through the scheme's own website, so it can register what you've bought to pay you the money.
You simply register at KidStart.co.uk and use the links retailers which are broad-ranging such as Waterstones, PC World, Laura Ashley and Halfords.
All children born since September 1, 2002 are eligible for a CTF. HM Revenue & Customs will allow family and friends to top up the account by £1,200 tax-free.
Figures show just under a third of accounts are being topped up, and so KidStart could help improve CTF savings.
Miles Bingham, marketing director at Family Investments, a CTF provider, said: "KidStart is an innovative concept which rewards parents for their everyday spend and benefits children directly."
Meanwhile, a pre-paid card - the BaBeeCard - gives parents access to discounts on baby-related items and everyday essentials such as groceries and petrol - even holidays.
It claims that a family that spends £100 a week on groceries and £50 a week on petrol, will be able to save £7.50 a week - or £30 a month or £360 a year.
It costs £14.95 a year and needs to be loaded with cash as it is a standalone card and not linked to any current accounts or credit cards.
* Visit www.babeecard.com
* Holly Thomas is the deputy personal finance editor of the Daily Express and Sunday Express. Her opinions are her own and for general information only. Always seek independent financial advice.
