Parents need to put money away into savings accounts for their children from a young age, an expert has suggested.

This is likely to be one of the most effective ways of reducing debt later in life, noted Kate Moore, head of savings and investments at Family Investments.

"For example, to accumulate the £27,000 needed to meet [the] new £9,000-a-year university tuition fees for three years, parents would need to save £82 a month from birth to cover the cost," she explained.

Ms Moore emphasised that household finances are under extreme pressure at the moment, with parents who have young children trying to juggle all sorts of payments.

Savings may therefore not be at the top of their to-do list, especially when knowing where to put money can be a difficult decision.

The latest Debt and the Generations report commissioned by the Consumer Credit Counselling Service found that more than one million households in the 18-39 age group are struggling to cope financially.