Like most parents I would like to believe that my three and a half year old son is a budding genius but I am a touch more realistic.

Image: Tommy was perplexed by some of his parents financial decisions

I try to ensure that I am at least providing him with enough practical skills to help him navigate his way through life, and given my profession, a degree of financial common sense to go alongside.

Recent research from YouGov has, however, revealed some facts and figures that have started me thinking about the detrimental effect that I, alongside other parents, may have on their children’s financial futures.

Using a sample of 1,076 children aged nine and 10 and their parents, the findings show that the recession has reinforced children's good instincts about money, with a belief and willingness to save and not spend. But as we know, this does not always last into adulthood.

The survey also found that 80 per cent of parents think it is important to have financial education in primary schools. This is fine but this form of tuition has to be nurtured and reinforced when possible in the child’s home. Whilst the old adage that children pick up bad habits from adults is true, it is also the case that adults have a lot to learn from children when it comes to personal finance.

All financial product providers are vying for our children’s cash. Given that individuals often stick with the bank they used as a child, this should come as no great surprise. Offering Child Trust Funds, ISAs, National Savings & Investments, children’s stakeholder pensions, children’s regular saver and plain old fashioned deposit accounts, there is no shortage of options.

The fact remains that opening an account for your child is a great opportunity to get children and, indeed, adults thinking about money, but this act needs further support. As Benjamin Franklin once said, "An investment in knowledge always pays the best interest." We could be left thinking (even more than usual) about the negative effect that we as adults have upon our bundles of joy. We could on the other hand face the real truth that finance has been made more complicated and embrace a return to a more simplistic approach.

We are in the midst of upheaval and potential revolution in the financial services sector, brought about by all the wrong reasons. It is time for a childlike approach. Clarity and honesty are required in both product design and financial advice. It is time for the “I would like it now, but realise I may have to wait” generation to take centre stage and replace those of the “I want it now” variety. Whilst the current economic conditions mean this view is almost obligatory, it must also be employed when the recovery is truly underway.

Children have never been more expensive to bring up but it seems that the cost of ignoring them is far greater.

Lee Tillcock, Editor, Moneyfacts Group

With the new year only a week old, some of you may already be struggling to stick by your new year’s resolutions.

Giving up smoking or losing weight might seem a good idea on 1 January. However, return to work and all the daily frustrations which a cigarette or chocolate helps to temper come flooding back.

Image: Bang goes the diet for another year

Indeed, according to recent research, over three quarters of people who promise to make a positive change in the new year eventually fail in their attempts to do so.

Despite this, it is encouraging that a separate study by Which? has just revealed over half of people (56%) who have made a resolution this year have made money-related ones.

Research on what the Government’s new year aims might be is limited, but it has been told that tackling the pensions crisis should be near the top of its list.

Pension provision in the private sector has continued to deteriorate over the past year and with seven million people in the UK still not saving enough for their retirement, urgent action is required.

The Government’s great white hope is the personal account, or National Employment Savings Trust (NEST for short), as it has just been renamed.

Due to come into effect from 2012, the accounts will provide a simple, low-cost pensions savings vehicle, giving all employees the right to a good quality workplace pension with a contribution from their employer.

Key to the regime, however, is that employers will have a duty to enrol their eligible employees into the scheme automatically (provided they are not already in a better one) and make payments if the employee doesn’t opt out.

While the initiative is sure to bring more pension savers on board, concerns persist that some employers will struggle to absorb the cost of implementing the scheme. It is also feared that some will take the opportunity to level down the benefits available from their existing pension schemes merely to meet the minimum requirements.

Indeed, according to the Association of Consulting Actuaries, around six in ten employers intend to review their arrangements ahead of 2012, while a quarter are considering benefit reductions to offset the cost of increased membership through auto-enrolment.

Despite this, if workers with little or no pension saving are encouraged to start putting something aside, then the scheme will surely have been a success.

However, if your resolution was to sort out your finances in some way, it’s worth remembering that there is no time like the present to start saving for your retirement. Why wait until 2012, when you could be getting a head start right now?

Tim Leonard, Senior Reporter, Moneyfacts Group

Which of you who likes to dabble in stocks and shares fancies a positive return on your money, even if the markets are going down? Sounds like a good deal, doesn’t it, and that is exactly what absolute return funds have been aiming to do for investors.

Image: Dave wasn’t impressed with what the fund manager was telling him.

The credit crunch and recession have seen unimaginable amounts wiped off the value of the world’s stock markets and in all likelihood, it will have hit you in the pocket too.

Your pensions, ISAs and any other investments are all likely to have taken a considerable dip in value over the last year or so, apparently through little fault of your own.

So when an offer such as that made by absolute return funds is up for grabs, it’s unsurprising that their popularity soared during the heavy market falls seen last year.

Now, of course, the big question is: how have the funds been performing?

Looking at the last 12 months, the absolute return sector as a whole has managed to deliver the goods, posting a return of 1.8%. With the average fund across all sectors making a loss of almost 13% in that time, it is no mean feat.

Indeed, those lucky enough to have invested in the CF Octopus Partner (Absolute Return) fund will have seen a £1K investment made a year ago grow to £1,324 in only 12 months.

With regards to spectacular returns, this fund proves to be the exception rather than the rule, although others have been less eye catching but still managed to deliver on their goal of positive returns.

However, dig a little deeper and it’s likely some investors will have been getting a little hot under the collar, and not because of the recent heatwave.

Ten out of 21 absolute return funds with a one year history failed to live up to expectations in that time and have made a loss. Take into account charges and this rises to 13 funds out of 21.

Whilst remembering no investment vehicle can provide a 100% guarantee to deliver growth, given this is the overriding aim of an absolute return fund, that so many have fallen short of the mark is somewhat of a surprise.

And if you were one of the many that turned to absolute return, thinking the funds all but guarantee a positive return, the losses will undoubtedly have come as a shock.

So, in response to the question: “Is there such a thing as a sure fire bet in the world of investments?”, the answer most definitely is: “Absolutely not.”

Tim Leonard, Senior Reporter, Moneyfacts Group

The humble 20 pence piece hit the big time this week when it was unexpectedly upgraded from the loose change box under the bed to the most studied and sought after coin in the realm.

Caption: Martha was ready to hit the shops with her 20p pocket money

It would appear that the Royal Mint has made a blunder by striking a batch of 20 pence coins minus the year of issue (2008). The exact number that slipped through the net is not certain – which is odd to say the least, unless of course this is a form of quantitative easing via the back door?

Estimates suggest around 100,000 coins were struck and bearing in mind the UK population is around 66 million, the chances of getting one are slim – but some lucky people are sure to be pleasantly surprised.

What do you do with a coin if you find one? You could of course offer it back to the Royal Mint, who is hoping a £50 enticement will suffice – or you could visit an auction site or specialist coin collecting market, or alternatively you could keep it, very safe and hope that the value increases over a number of years.

Bearing in mind the last time this sort of thing happened was 1672 and that it is unlikely to happen again for many years, if at all, one of these coins could become a wonderful little nest egg.

Which begs the question, what will the Royal Mint do with any it buys back? Will it destroy them, or will it be boxing them and reselling them to excited and numerous coin collectors worldwide?

Sylvia Waycot, Publisher - Moneyfacts Group

You may not have noticed it, as this has been quite a busy time in Westminster, but the new Equality Bill, set to become law in 2010, is to put an end to age and gender bias, including in the sale of financial products.

Above:Hands up all those who think they are getting the best rate?

Banks and building societies may be prevented from treating some customers more favourably than others, including offering accounts aimed at older savers. Regardless of age the Bill does raise issues over gaining value for your savings.

The 50+/silver saver accounts should recognise that older people have saving needs and requirements that often focus on simplicity, reliability and regularity of payment. Accounts designed specifically for older savers do not always offer rates higher than other accounts in the market. Best deals are not necessarily those claiming to be the most appropriate, with rates on these accounts on the whole lower than the best instant online savings accounts available to all.

The Government recently increased the ISA limit for those over 50 earlier than the rest of the population, slightly at odds with their legislative policy. The Bill has been described as unworkable, misleading and gobbledygook, which surely makes it a certainty then. Given the current difficulties with politics, upsetting those most likely to vote would previously have been unwise. Alienating the whole electorate however, may be a cunning plan to ensure no one even bothers to vote.

Whilst the Government is keen to discuss the issue of age at a national level, in my humble opinion, there is a more pressing need for the spotlight to focus on the opposite end of the age spectrum. When not discussing MP's expenses, this week's news headlines have been filled with the details of a new family unit consisting of a Mummy, Daddy and wee one, all aged 15 or under. Are they all able to access children's accounts, never mind child benefit and child trust fund allowances?

The vast majority of the UK's eight million pensioners rely on savings or share-based income during their retirement. Compounding this, the Institute for Fiscal Studies estimates that due to the continued high annual inflation in food and domestic energy costs the poorest pensioners over the age of 80 are facing an inflation rate of 6.7%‚ compared with the official rate of inflation of 3%.

The facts are clear. Now more than ever savers need to shop around to get the best deal for their money, with the ideal place to start. With any rate rise unlikely until next year, this is a good time to ensure you are keeping any savings in the right account.

Lee Tillcock, Editor of Moneyfacts

What did you want to be when you grew up? A fireman, a ballerina, an astronaut?

Left: You’re fired: After some pitiful returns, Alan Junior decided to sack his child trust fund manager

It’s a question that we were all asked at some stage of our childhood, although if you are anything like me, things may not have gone exactly to plan ever since. I seem to recall a crazy notion that I wanted to be an archaeologist. Although I’ve no real recollection where this idea stemmed from, I have always suspected it was a combination of an unhealthy appetite for digging holes in my parent’s back garden and an obsession with Indiana Jones!

However, judging by recent research from The Children’s Mutual, today’s kids are far more serious in terms of their career aspirations. Its survey of five and six year olds found that teacher, doctor and vet were the most popular career choices. With the exception of becoming a TV/cartoon character (unfortunately the survey didn’t specify whether we are talking Superman or SpongeBob SquarePants here), the list of top ten career aspirations appears to be pretty sensible.

The research makes the sound point that achieving these aspirations will not come cheap. Six of the top ten career choices all require higher education and training, leaving parents to dig deep into their pockets in order to help their children achieve their aspirations. According to the report the cost of a three-year degree course is currently £42,000, but could rise to over £56,000 by the time these youngsters are ready for university.

Many parents with children born on or after 1 September 2002 will be pinning their hopes on the Government’s child trust fund scheme producing a significant nest egg. Sadly, the returns so far have been less than impressive. Four years since the scheme was launched, parents are understandably angry that the average stakeholder child trust fund (the Government’s preferred option) is worth less than the total contributions paid in. It is also easily surpassed by the average cash child trust fund even though interest rates have been falling!

However, there is hope on the horizon, with signs that the recent stock market rally could finally boost returns. Since the beginning of the new tax year the average stakeholder child trust fund account has increased by 8% suggesting that it could yet be worth enough for more than a round of drinks and a packet of peanuts when the first accounts mature in 2020!

Even so, parents should review the performance of their stakeholder child trust fund on a regular basis to ensure that it is delivering the goods. Similarly, if you have opted for the safety of a cash child trust fund instead, check out whether you are still getting the best interest rate on the market.

In the meantime, it would appear that some children are already one step ahead of the game. Rather than relying on their child trust fund, an increasing number have decided to head for one of the few occupations where the streets are paved with gold and further education is unlikely to matter.

Yes, you guessed it; becoming a professional footballer was the biggest mover in the list of children’s aspirations; rising three places from seventh to fourth. Now that’s what I call thinking on your feet!

Richard Eagling, Editor, Investment Life & Pensions Moneyfacts

UKplc is a company in trouble and due to its failings, racking up unprecedented levels of debt; we are set to live beyond our means as never before.

Left:Pinocchio was paying the price for his negativity

You may have guessed that I'm not optimistic by nature; more glass half-inched than half empty. I do however, feel the need to point out a few home truths on the recent spate of stories discussing negative equity in the housing market.

The recent chatter would have us all believe that families will soon be wandering the streets destitute and broke. In reality, the truth is that talk is cheap and the recent alarming reports could prove costly. We are in the midst of an ongoing battle between those talking the housing market up and those looking to drive it further down. Vested interests aside, the truth lies somewhere in between.

Reports suggest a total approaching two million households will fall into negative equity by the end of 2010. The problem however relates to the myth that there is a strong causal link between negative equity and mortgage repayment problems. Finding yourself in negative equity is totally different to falling into arrears and missing mortgage payments.

It is not in the interests of lenders to repossess properties that were bought by individuals who were at best victims of bad timing. The downturn and government intervention has seen lenders become more realistic when talking to borrowers about repayment of mortgage arrears. Those facing negative equity are finding more lenders providing the option of choosing between a lender's SVR, a fixed rate or even special high LTV deals.

Wednesday's Budget did bring some good news. The extension of the stamp duty holiday for properties under £175K, a scheme allowing home-owners to claim benefits to pay mortgage interest extended for an extra six months, £500million to kick-start stalled housing projects, the extension of the Mortgage Rescue Scheme to include households in negative equity and a £20million fund to allow local authorities to give small loans to families at risk of homelessness through repossession or eviction.

The level of demand for homes does once again seem to be encroaching on the level of supply. House prices are falling to something approaching reality. Once people start asking realistic prices for their house, the market will move. Falling house prices and reductions in mortgage rates have led to improvements in mortgage affordability, but prospective homebuyers should factor in the likelihood of further house price falls when deciding whether or not to buy. Climbing on to the housing ladder should be treated as a step into a long term investment.

It could be worse as we could be saddled with blind optimism and the negative equity currently affecting numbers 10 and 11 Downing Street. Now where is my glass?

Lee Tillcock, Editor of Moneyfacts

In the build up to this year's Budget, much of the talk has focused on how the Chancellor could respond to the cries of help that are emanating from just about every area of the UK's financial and social sectors.

Indeed, Moneyfacts.co.uk's very own Tim Leonard said if today's proposals satisfied most people just a little bit, it would have to be deemed a success. It is probably too early to make a definitive judgement as, with all Budgets, what it means to each and every one of us will become clearer in the coming days as the small print is pored over.

That being said, high earners - a group which already pays a significant amount of tax - are unlikely to be entirely pleased with the news that half of their income over £150,000 will be winging its way to the Treasury from next year.

It is also doubtful that those earning over £100,000 will be enamoured with today's announcement which will see them stripped of their personal income tax allowance, although it is a problem that I, personally, would be delighted to suffer.

By the same token, the over fifties seem to have most reason to raise a glass to the contents of Mr Darling's red briefcase this evening. One of today's headlines is the announcement that the annual limit on individual savings account, ISAs to you and me, has been increased for just the second time ever. With the highly popular account celebrating its tenth anniversary this year, the move is not before time.

The upper limit has been increased from £7,200 to £10,200, of which £5,100 can be cash - a development that many have been advising for some time. Many of us will have to wait until next year to take advantage but over fifties will benefit from the increased allowance from 6 October this year.

Mr Darling also unveiled plans that will mean grandparents of working age who care for their grandchildren can count such work towards their entitlement for the basic state pension. As expected, pensioners can also count on an increase of at least 2.5 per cent towards their pension, regardless of inflation which, given the latest figures indicating deflation in the UK for the first time in half a century, will certainly be welcomed.

Other announcements of note included the stamp duty exemption on homes of up to £175,000 being extended to the end of the year, a £2,000 discount on new cars for motorists that trade in models that are ten years old or over, and a commitment to create 500,000 new jobs.

For a more detailed breakdown of the 2009 Budget, be sure to check out the news at the top of the page. Do be warned, however, if you wish to celebrate the news with a tipple or drown your sorrows as a result, that alcohol taxes go up by two per cent from midnight!

Abraham Lincoln once said that you can please some of the people all of the time and all of the people some of the time, but you can't please all of the people all of the time.

If Wednesday's Budget manages to somehow satisfy most of the people even just a little bit, the Chancellor Alistair Darling will surely have pulled off one of the greatest juggling acts ever seen.  

Cries for help are coming from all angles: businesses are struggling as the recession bites ever deeper; record low interest rates have seen the returns that savers receive on their money slump to almost nothing; and the housing market remains in a deep slumber.

Somehow Mr Darling needs to reach out to them all (and others besides), but also do it with his hands seemingly tied tight behind his back by what is expected to be the biggest Budget deficit since World War Two.

So what is the famous red leather briefcase set to reveal?

Tax increases could be on the cards as the Treasury attempts to recoup some of the massive amounts of money it has laid out in its attempts to rescue the banking system. However, with a General Election pencilled in at some point within the next 12 months, upsetting potential voters will be something that Mr Darling is keen to avoid.

The standard rate of VAT may have been temporarily reduced to 15% but it is due to revert back to 17.5% at the end of this year and could quickly climb even higher to provide a fast and effective boost to the Treasury's coffers.

Measures revealed in the pre-Budget Report already mean that National Insurance contributions will rise by half a per cent from April 2011. Meanwhile, personal allowances for those earning more than £100K are set to be lowered and a 45% higher income tax rate for those earning above £150K is set to be introduced at the same time. Many have predicted the change to National Insurance could be delayed, but equally the 45% rate could be raised higher to help compensate.

As interest rates have plummeted, incentives for people to save have been in short supply. One way of recapturing savers' attention could be to raise the ISA limit, something which has happened just once since its introduction ten years ago. Increasing the amount that can be invested tax free in cash could also prove a real head turner.

For homeowners, a temporary rise in the lower stamp duty threshold from £125,000 to £175,000 is set to come to an end in September. An extension of the deadline or a further rise in the limit could prove to be another vital step on the road to a recovery in the housing market.

Congratulations! You have landed on the Moneyfacts.co.uk new look news pages. Please stay a while and look around.

We have split the news into three distinct sections.

The first is our Breaking Product News section, which you will find speeding across the page in the form of a ticker tape. As new products are launched we will include the details in this section, making it much easier for you to keep track of the best deals around. To make it effortless for you, we will only include products that our team of financial researchers rate as four or more Moneyfacts stars.

Clicking on any of these stories will at the same time provide access to our selection pages so you can take a considered view of whole areas.

Below the ticker tape is the Main News section. We like to think of this as good old fashioned-style news reporting, where we tell you the facts and leave you to decide what you think about the issue. We will cover any news that is money related. It will be honest and reliable and is written in-house by a team of expert financial journalists. If you are interested in finance, this is the site for you as there will be no need to filter out the bits you aren’t interested in - it will all be of interest.

Our final area will be our blog. This is where our personalities will shine through - or so we like to think! In this section - which is still being developed - we will comment on the news that has made our pages, we will also from time to time, provide money saving tips and the more unusual or funny finance stories.

We are all very excited about this new venture but it means nothing if we don’t get it right for you. So please let us know your views on the news and if you like it, then why not bookmark the page as a favourite?

Sylvia Waycot
Publisher
Moneyfacts Group