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Big investments for little people

To give your children a leg up, start investing when they're young. Here's how
Big investments for little people

The saying about private school fees planning used to be: "If your children have already been born, you have left it too late to save." In a world where everything from nursery costs to university tuition fees is rising sharply, that adage is true whether your child goes to Harrow or Hackney Comprehensive. You need to get started early!

Come 2012, universities can charge up to £9,000 a year for tuition, and most have indicated they intend to. Factor in modest inflation and living costs and a university education for a child born this year could cost around £100,000, according to figures from Hargreaves Lansdown.

It doesn't end when they graduate, either. Hargreaves also estimates that a child born this year will need an £80,000 deposit (15 per cent) to buy a property at age 25. The average first-time buyer price in 2011 is £124,000 - factor in long-term house price inflation to 2036 and the average first-time buyer property will cost around £533,000.

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