Many parents hope to be able to give their children the opportunity of a university education. But such an opportunity is fast becoming a luxury. The National Union of Students says that average debts may reach £53,000 for UK students starting courses in 2012. And one report claims that if even modest inflation is factored in, a child born in 2011 could face a three-year university bill of around £100,000.

Given such high figures, it is important that potential students and their parents make careful financial plans and stay savvy when it comes to saving.

Having money put away will help parents when their children need to make sizeable withdrawals from the ’bank of mum and dad’, whether it’s before or after graduation.

Individual savings accounts (ISAs) are a great way to start amassing a significant money pot. Parents wishing to save for their young children’s futures over the long term (say 18 years) could consider taking out a stocks and shares ISA, either using their own tax-free allowance or by setting up a recently launched stocks and shares Junior ISA (JISA) or a cash Junior ISA.

Stocks and shares ISAs are different to cash ISAs in which you build up tax-free interest on savings within an annual allowance (£5,430 this tax year). Instead, with a stocks and shares ISA you invest your money (up to £10,680 this tax year) and don’t have to pay capital gains tax on the money you make. This type of ISA is more suited to investing over the long term and pays higher returns due to the risks associated with speculating in the stock market - as with any investment, the value of your investment could go up or down.

Meanwhile, cash ISAs can be a good home for more short-term, regular savings and have the advantage of being a secure home for your money. Having some money put aside can give students more time for their studies - or even for extra-curricular activities such as clubs and societies and letting off steam by dressing up as a Smurf or being pushed around in a supermarket trolley - instead of having to work part-time to support themselves.

Nonetheless, many students do choose to work part-time at some point during their university course, or in the summer. Putting some of this away into an ISA can be a good way of preventing money being spent immediately, and means it will have the added bonus of being tax-free.

Better-off students can also benefit from having an ISA. For instance, a student receiving financial help from their parents could decide to save a significant proportion of their low-cost student loan into a competitively paying ISA each year. By the time they graduate, they will have saved a healthy lump sum that could help them in their chosen career by funding work experience or even help them get onto the property ladder. Of course, the student loan will have to be repaid, but the low rates of interest mean they are one of the cheapest ways to borrow money.

This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.

Barclays is a major global financial services provider engaged in retail banking (bank accounts and instant access savings accounts), credit cards, corporate banking, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves, invests and protects money and provides investment ISA options, home insurance, life insurance, a mortage calculator, guides on how to buy shares and other services for over 49 million customers and clients worldwide. For further information about Barclays, please visit our website www.barclays.co.uk.