Giving your children a financial boost when they reach adulthood is a priority for most parents and grandparents. But finding the sort of money that will make a difference to an 18 or 21 year old can be a tall order.

Few of us have this much cash to hand. Maybe, when faced with the cost of higher education, or the hefty deposit and first month's rent on a flat, we could raid our own savings. But that is hardly ideal. Much better to plan in advance and devise a strategy that will provide sufficient money, when required, without punching a hole in the family finances.

As with any financial planning, discipline is key. Anticipating the money needs of children years hence means salting away funds in a benign environment — one where they can grow with minimum interference from the tax man. And the cash may need to be kept out of the clutches of the children themselves. There is no point building a valuable fund if it ends up being squandered prematurely by a teenager.

The role of parents and grandparents in helping following generations is increasingly important. More children are in higher education, some paying fees on top of living costs. According to the Children's Mutual, by 2023 it will cost over £41,000 to complete a three-year university course.

Then there is housing. Someone getting on today's property ladder will have to spend around £160,000 — the average house price in Great Britain, according to the Halifax. That means finding £8,000 just to put down a 5% deposit. If the same house costs £300,000 in 2023, a 5% deposit would be £15,000.

What about a wedding? According to confetti.co.uk, paying for the big day could currently set you back up to £14,000. Factor in inflation at 2.5% over 18 years and you could be looking at around £25,000. Want to buy your child a car as an 18th birthday present? Think what it might cost in the future. After all, how much was your first car?

There are many ways to save efficiently and effectively. Children born since August 2002 qualify for the government's Child Trust Fund. In other schemes, there are ways to maximise tax benefits by saving long-term. Of course, the tax rules could change.

If you have children, it might be time to think ahead and consider how you will help them meet their financial challenges.