Teenagers want spending restriction

30 November -0001

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Teenagers are hoping for a restriction on spending for the new Child trust fund, a survey has revealed.

Under the new scheme, children will be given £250, for their parents to invest as they see fit with children from poorer backgrounds getting an additional £250 on top. The money gains interest and the child is given a lump sum on their 18th Birthday. This will become theirs to spend as they see fit.

But teenagers surveyed said that despite them having sensible views on how the nest egg should be spent, they were strongly in favour of placing restrictions on the way the money should be spent.

Research by the Economic and Social Research Council reveals a broad understanding among policy makers on why restricting the way in which the money is spent would be undesirable. But teenagers wanted to see the money spent on 'sensible things' Like setting up a home or business, buying a car, or higher education.

"The child trust fund is important and unusual because it is the first new universal benefit for 50 years and the first capital grant scheme to open anywhere in the world," said professor Andrew Gamble of the University of Sheffield, who led the study.

"The fund is also different because, unlike many government policies, it is long-term, with the money tied up for 18 years. It is clearly aimed at changing attitudes and behaviour."

The funds are expected to make aroung £1'000 by the time the child is 18, but friends and family may contribute to the fund on the child's behalf.

Many teenagers didn't think that this would make a difference to their lives, whereas £10'000 would. However, most thought that £50'000 was too much for a young person to handle

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