With the introduction of student top-up fees, parents are being urged to start putting money into a savings account as early as possible.
Concerns are growing about the level of student debt, which already stood at £12,640 in 2005 and is set to increase with the prospect of more fees.
Debt levels in all areas of society have been worsening, according to the National Debt Line who received a record level of calls during the first three months of this year.
Even last week, governor of the Bank of England, Mervyn King, spoke of a "potentially large social problem materialising", which could suggest the need for more people to start using their savings accounts.
Student and youth indebtedness is a particular worry of F&C Asset Management and they want to see parents and guardians putting funds for further education into a savings account as early as possible.
Jason Hollands from the company urges families to take advantage of the Child Trust Funds introduced by the government as a way of saving up for their child's future university course.
"Over the long-term the Child Trust Fund, which was introduced by the government a little over a year ago, will have an important role to play in enabling parents and grandparents to build up a pot of cash which can be used by the child to fund a university course," he concluded.
Parents urged to put funds in savings account for student offspring
Parents urged to put funds in savings account for student offspring
Tue, 16 May 2006
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