Advice
Assess your current financial situation
The most obvious way to start planning your savings strategy for your children's education is to assess your current financial circumstances. What are the total financial demands that will be made on you over the years of education ahead? What can you afford? How long do you have in which to start saving before you're paying for education? All these questions, and many more, need answering - but fundamentally, you need to compare income with outgoings, to see if you can realistically achieve your expectations. It may mean cutting down on family expenses now in order to obtain results in the long term, but it will be worth it.
Look further afield
You should also look beyond your own immediate financial circumstances, taking into account possible windfalls, family inheritance and the support you might receive from close relations - grandparents are often only too happy to help out if they are able to, or maybe another member of the family can provide financial support which you can pay back under an informal agreement.
Get a better deal on your mortgage
If you're a home-owner paying out monthly mortgage repayments, it's quite possible that you could get a better deal from your existing lender or move to a better rate with another bank or building society. Even changing the way you pay could help - for example, by utilising your current account to make monthly repayments, so that if you have the money available, you can pay more off the mortgage earlier on, freeing up the rest of your finances from the burden of any more repayments.
Cut down your insurance premiums
Think of how many insurance premiums you pay - perhaps with the same insurer year after year, simply out of habit and convenience. Car, property, home contents, holiday insurance - you could save money on all these premiums if you take the time and trouble to find out if competitor insurance providers offer lower prices.
Increase your bank account returns
You could change your bank to one which delivers a better return of interest on your accounts; many internet-based banks pay excellent returns, plus you have the added benefit of being able to conduct all your banking on-line.
Reduce your credit card bills
The most obvious way in which to reduce your credit card bills is to use your credit card less. Try paying for your purchases in cash instead - it quickly concentrates the mind on exactly how much things costs. And compare the credit terms of other credit card providers - there are some very good deals available if you hunt around.
Keep hold of existing investments
If you have existing savings that you can avoid using, reserve the net amount (or part of it) for your children's education. Keep your PEPs as they are - once cashed in, they can't be replaced - and you can always change to another PEP provider or alter your funds in order to make your money work harder.
It's worth holding on to endowment policies until they mature, since cashing them in early usually results in a poor net value. If you must cash in a policy early, talk to an Independent Financial Adviser (IFA) first - they may find a buyer who will pay more for it than the issuing insurance company.