Nationwide building society is emphasising the importance of a Child Trust Fund (CTF) as a means of building a fund to help your child through university.
With the total cost of taking a three-year degree course outside London estimated by the National Union of Students at more than £31,000, the savings fund could certainly come in useful when your child turns 18, the bank points out.
"Saving is such important thing and people aren't doing enough to put money aside," Nationwide spokeswoman Charlotte Sjoberg told Reuters.
Ms Sjoberg added: "[The CTF has] been handed to them on a plate and you've got the money to kick-start it. It's the perfect vehicle to try and build a nest egg to help fund university."
According to Nationwide, parents who invest the maximum amount (£1,200 per year) in a CTF will see their child's fund grow to about £40,000 by the time their child comes of age.
This would be just about enough to cover the projected costs of university in 18 years' time, estimated at £48,755 by Fidelity Investments.Click here to find out more about investing in your child's future.
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