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28/02/2011 14:48:57

Savings 'should be made while you can'

Savings should be made when families are able, as this approach to financial planning will help people deal with future costs.

This is the view of Dave Rodgers, managing director of the Debt Advice Foundation, who points out costs like university fees could be prohibitive if households have not put money aside.

"Savings built up over time can allow parents to help their children in the future," he advises, noting when it comes to higher education, "it's probably sensible to assume that cost may well become a barrier to entry".

Personal finances are strained by many costs and a new report from LV= indicates the amount of money needed to raise children is climbing.

Parents will now require £210,000 to support a kid until its 21st birthday - equivalent to £836 a month and £10,040 per year, the data reveals.

The amount shelled out has risen 50 per cent in the eight years since the first Cost of a Child report was published in 2003.