Parents advised to start saving for children sooner rather than later

Parents should try to save as early as possible for their children, it has been suggested.

Placing cash into savings accounts such as ISAs or fixed rate bonds in important for households on a wide range of different income scales in the wake of the global economic downturn.

That is the view of Dave Rodgers, managing director of the Debt Advice Foundation, who has said that putting money aside as early as possible can help to tackle both planned and unforeseen family costs.

"It's always a good idea to save money whilst you can as it helps to minimise the impact of any future expenditure," he advised.

For example, Mr Rodgers noted that while it is impossible to say for certain how universities will be funded in the coming years as the country continues to adapt to the government's austerity measures, parents could consider the possibility of saving for their children's educational future.

"It's probably sensible to assume that cost may well become a barrier to entry," he added.

Mr Rodgers' comments came after the publication of LV='s annual Cost of a Child report last month (February 24th 2011), which indicated that the cost of raising a child had increased by around 50 per cent in the last eight years.

The study showed that parents and family now have to spend an average of more than £210,000 when bringing up their child up until their 21st birthday, which is the equivalent of £10,040 annually or £27.50 every day.

Despite these rising costs, the Debt Advice Foundation official noted that planning in advance by building up sufficient savings over a significant period of time can "allow parents to help their children in the future".

Meanwhile, Jasmine Birtles of moneymagpie.com said recently that increasing inflation in the UK could affect those with savings accounts.