MONEY TALK By Francis Klonowski A multi-award winning independent financial adviser

With debt fast becoming a way of life for students, a financial expert examines how parents can better take up some of the burden.

Not everyone wants to send their children to private school : they may be happy with their local school or it may be out of reach financially.

But university and further education: now that's a different story.

A university degree is for many a passport to a successful career or profession, but the burden of debt can be financially crippling for the graduate well into their thirties.

All in all, the introduction of tuition fees, escalating living costs and the disappearance of the student grant means further education could be beyond the financially unprepared.

Fiona's funds

The case of Fiona and her parents Geoff and Suzanne illustrates the typical costs facing a family looking to fund a child's further education.

But would you really want to plan to have a loan? Probably not.

Fiona is 11, due to make the step up to secondary school in September and already showing signs that she would follow both parents' example by going on to university.

It's the best part of 20 years since Geoff and Suzanne graduated, and things have changed a bit.

With their combined incomes of �53,000 they are not going to get any state help; at the same time, their other commitments - especially the mortgage - would make it difficult to pay for everything out of their disposable income.

First, Geoff and Suzanne need a target to aim towards.

Fresher finance

If Fiona was to go to university today I would recommend that Geoff and Suzanne put aside �6,000 a year to cover fees and living costs.

However, Fiona won't be going onto further education for at least seven years and education costs are currently racing ahead of inflation.

Assuming education costs increase by 5.5% a year the �6,000 needed to fund a fresher year today will rise to �8,728 in Fiona's first year, �9,208 in the second and �9,714 in the final year.

In total Geoff and Suzanne would need to save �27,650 if they don't want Fiona to borrow or work long hours when she should be studying.

I have seen convincing arguments for using student loans, low interest rates attract many.

But would you really want to plan to have a loan? Probably not.

Although millions of small investors have felt the pain of falling stock markets over the long term it is still the best place to invest

After all, who is to say they will always be available - and if they are, whether the terms will always be so favourable?

Invest don't save

By putting away a minimum �170 per month for the next ten years - saving into Fiona's final year - Geoff and Suzanne can reach their goal

But simply paying �170 per month into a safe building society account or a National Savings product is not going to get them over the finishing line.

They will need to invest rather than save in order to achieve their goal.

Although millions of small investors have felt the pain of falling stock markets over the long term it is still the best place to invest.

In Geoff and Suzanne's case they have ten years to ride out the peaks and troughs of the market and come out the other side having turned a healthy investment profit.

What is more, by drip feeding money into the stock market month-in month-out Fiona's parents will benefit even if the share price falls in the short term as their investment will go further buying more shares.

But investing in single company shares can be risky, instead Fiona's parents should look at investment trusts which are a low cost way of investing into a basket of shares.

As Fiona enters sixth form, Geoff and Suzanne would need to start moving some of their gains into cash - so that as she starts packing for the first term at university, they have enough in cash to meet their anticipated year one expenditure.

The views expressed are solely those of Francis Klonowski and are for general information only, do not constitute financial advice as defined by the Financial Services Act and are not intended to be relied on for the purposes of making an investment decision.

Always obtain independent advice from a qualified, registered financial advisor before making any investment decisions.