The proposal accepted by the Government this week that tuition fees for students could be unlimited has set alarm bells ringing for many families.

Business Secretary Vince Cable endorsed radical funding reforms put forward by Lord Browne which could see students expected to pay tuition fees of around £7,000, more than double current levels, from 2012.

This will worry many families with children coming up towards university age and underlines the fact that financial planning should focus on the whole family and not just those with an established career or business.

If the proposal becomes law, young people will be expected to begin to pay off their debt, which could run into tens of thousands of pounds, as soon as their earnings hit £21,000 per annum. Student bodies have claimed that this could deter those looking at higher-priced courses at the more expensive universities.

Under the proposal, the student themselves will pay off the loan but, we all know, this sort of burden is likely to increase the calls on the “bank of mum and dad”. This is where putting a plan into place for the whole family comes in. Not only does it help to clarify where these extra funds will come from but it also helps to establish the concept of financial planning for the younger members of the family, ensuring that they understand the implications of their decisions and are able to make the right choice about which course to take, whatever the cost.

It is never too early to establish a life plan. The beauty of the process is that it takes the fear out of dealing with financial issues while remaining completely flexible. The student can look at all the “what ifs”, from how they will pay back the loan from the basic salary level of £21,000, to what the implications are if they earn double that sum in their first job.