YOUNG people are in favour of Child Trust Funds, but think there should be restrictions on what the money can be spent on, research showed today.

Politicians, officials and other commentators have accepted the government's policy of not specifying how the money should be spent. This is due to the practicality of policing what account holders do with it.

A study by Professor Andrew Gamble, of the University of Sheffield, found the most common thing young people thought the money would be spent on was higher education, followed by a car, starting a business and saving for a deposit for a house. Young women also suggested paying for childcare.

Under Child Trust Funds, all children born on or after September 1, 2002, will receive £250 from the government, with those from less well-off families getting £500 to invest.

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