Parents `should save to avoid debt problems for children`

1 October 2008

In order to prevent their children from experiencing debt problems early in their lives, parents should begin saving for them on a regular basis.

This is according to fund management company M&G, which said that by investing in actively managed funds, parents can ensure they provide their offspring with the best possible financial start.

Figures cited by the firm suggest that young people in the UK currently face significant strains on their personal finances, with students footing annual bills for accommodation and other living costs of around £4,900.

In addition, tuition fees now cost as much as £3,145 per year.

"As a parent myself, I am very aware of the demands that children can make on your finances, so, by investing regularly ... parents can look to ease the strain with an investment that grows over the long-term," stated Jonathan Willcocks, managing director of global sales at M&G.

Meanwhile, research published recently by National Savings and Investments suggested that many parents are willing to get into debt in order to provide their offspring with the best opportunities in life.

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