CAN you trust an 18-year-old not to blow a nest egg on drink, drugs and rock ’n’ roll? New research suggests that even teenagers are wary of their ability to spend cash wisely.

Today’s youngsters believe there should be restrictions on how future teenagers can spend the proceeds from child trust funds (CTFs), the Chancellor’s pet initiative to give new-born babies a savings boost.

The research, carried out by Professor Andrew Gamble, of the University of Sheffield, found that 18-year-olds believe their future counterparts should be forced to spend the funds on such things as higher education.

Under the CTF scheme, all babies born after September 1, 2002 receive a £250 voucher from the Chancellor to invest in a CTF account. Children from lower-income families will receive up to £500. The Government intends to add a £250 top-up when chidren turn seven. Parents can invest £1,200 a year into the accounts. Once the holders turn 18, they can spend any cash accumulated as they choose.

George Osborne, the Shadow Chancellor, said: “While it is up to people how they spend their CTF, the whole point of them is to encourage people to save and that is how we will judge the success of the policy.”

The study, sponsored by the Economic and Social Research Council found that even those who would like to see restrictions imposed on the use of the funds believed that it would be impractical to police how young people spent the cash.

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