A report for The Children’s Mutual suggests that Britain’s teenagers are far more responsible with money than parents think.

While many parents say their offspring would blow a lump sum on turning 18, the youngsters are actually more likely to save than to spend.

According to the research – released to coincide with the third anniversary of the Child Trust Fund (CTF) – youngsters given £20,000 at 18 are most likely to save it (57%), with spending on education or putting it towards their first house their second and third choices.

In the Trust Fund Generation report, the Social Issues Research Centre asked parents to predict what their children would do with the cash lump sum. They said their children would waste it on material goods (42%) and splash the cash ‘just having fun’ (19%).

David White, chief executive of The Children’s Mutual, said: “The Child Trust Fund was launched to give every youngster in the UK a financial springboard into adulthood and to change the nation’s savings habits.

“You’ve got to give credit to our teenagers. Their parents were brought up in an environment that was all about borrowing and spending but this generation of young people has realised that saving now and spending later is a better approach. With the papers full of the credit crunch there has never been a more appropriate moment to talk about this.

“We think this is good news for parents. They can save into Child Trust Funds with the knowledge that the money is going to make a real difference. The Child Trust Fund was introduced to help give young people choice and if today’s teens are anything to go by, it could revolutionise the UK’s saving culture. Tomorrow’s 18-year-olds will also benefit from the financial education that goes hand-in-hand with growing up owning a Child Trust Fund account, altogether delivering a promising future.”