Amid the controversy surrounding student loans and living costs, have we overlooked the biggest financial headache for Britain's 18-year-olds?

Many are hard pushed to get their dream job, claims a new survey, because they can't save the necessary cash.

The Harrogate-based Homeowners Friendly Society asked seven to 15-year-olds what they wanted to do and calculated their likely training costs.

The conclusion is that would-be policewomen are on a safer wicket than pop stars.

Homeowners calculates a pop star such as Alex Parks, winner of BBC's Fame Academy, typically spend £23,400 on their training - three one-hour sessions a week for five years at £30 per session.

Policewomen, by contrast, train "on the job" - for a starting salary, in the Thames Valley at least, of £18,666. Is your son the next David Beckham? Training him, says Homeowners, could cost £4,200 - unless he is spotted early on by one of the big clubs.

Would-be pilots need £48,000, says the survey, and even hairdressers can spend almost £6,000 on an NVQ2 training course.

Naturally, Homeowners Friendly Society - looking after £500 million for 200,000 members - can solve the problem.

Its Better Start Child Savings Plan, launched in April, requires a minimum £10 per month over ten years, which is invested to grow free of tax in one of two funds linked to shares or - for cautious investors - in a building society deposit account.

money can be switched between funds three times a year free of charge.

Investments do not count against an annual ISA allowance, boosting the appeal to those who like to feel they are escaping the taxman's clutches.

Karl Elliott at Homeowners said: "Anything put aside in childhood is better than nothing - which is the point we are trying to get across."

Other providers are in the same sector: The Children's Mutual Baby Bond, from Tunbridge Wells Equitable Society, has similar investment limits as Homeowners but higher management charges.

Over 18 years, says Children's Mutual, the maximum £25 per month in its with-profits fund could grow to £8,640.

Suitable for older people passing larger sums to grandchildren is Stockplan: A Flying Start, from the venerable Scottish Investment Trust (SIT), which has built assets worth almost £1 billion since its launch in 1887.

A £1,000 investment in SIT in 1983 is worth £6,985 to a 20-year-old today.

SIT's Stockplan allows monthly payments to be stopped and restarted any time by investors, who get twice-yearly statements to show how their investment is faring.

All these plans - and others besides - will be prominent when the Government launches its next big idea in financial services: the Child Trust Fund (CTF) in April 2005.

With details still to be fleshed out, CTF is expected to offer a lump sum of £250 to every child born after September 2002, with children from low-income families getting £500.

The money, which can't be touched until a child is 18, is likely to be invested mainly in equities. There may be further top-ups by Government, with relatives and friends free to make additional payments.

If the Government gift is boosted by regular monthly payments of £50 from parents or grandparents, some lucky 18-year-olds could collect lump sums of £15,000-plus.

Ken Rayner, investment spokesman at The MarketPlace, believes the scheme could improve attitude to savings among young people.

He said: "The £250 sum is not in itself all that significant, particularly for people who may face bills of £18,000-20,000 to go to university. But it will give us something to talk to people about.

"It could become a secure savings vehicle which builds your child's future"

Virginia Wallis, author of The Which? Guide to Financing Your Child's Future, is not so sure.

Families who focus too much on the potential lump sum may neglect other details of financial planning, she fears.

She said: "I have nothing against saving but in the real world, many people switch off saving when children arrive.

"Either they leave work and lose income, or go back to pay childcare costs up to £6,000 a year."

Ms Wallis reckons a child costs anything between £80,000 and £250,000, from birth to its 18th birthday.

This is her checklist for parents keen to protect a child's financial future.

* Make a will, or update an existing one, after the birth or adoption to decide who looks after the child if disaster strikes.

*Fix adequate life insurance in case one or both parents die.

* If you have little savings, or your employer's sick pay scheme is poor, consider income protection cover in case illness strikes.

* Know the state benefits to which you are entitled. Most families can get Child Tax Credit, worth at least £500 a year.

* Use spare cash to pay off credit card debts first, or consider a larger mortgage to get a bigger home.

The Government badly needs a big idea to rebuild its shattered reputation with savers.

But family finances, says Virginia Wallis, may need a bit more than "Baby Bonds" to revive them.

Friday October 17, 2003