Millions of parents are saving in secret to bail their children out of debt after university

Almost half are keeping their hoarding hidden because they worry that if their children find out they will spend even more.

The so-called Bank of Mum and Dad forks out an average of almost £7,000 to pay off their children's debts at the end of university.

The introduction of college top-up fees in 2006 has left thousands of students saddled with debts of £20,000 or more after graduation.

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The report, from the savings giant ING Direct, revealed the 75 per cent of parents who kept their savings secret did so because they thought their children would learn more about the value of money if they did not know there was a safety net.

Others said they hoped it would teach their offspring how to manage their own budget before getting a job.

For many, saving money starts while their children are at primary school. Around a third make "huge sacrifices" to put money aside, the report reveals.

In some cases, parents are remortgaging their homes to boost their savings accounts, cutting back on their social life and selling possessions.

The bad news for parents is that their children have a few secrets of their own.

Almost 45 per cent of students admitted they had debts which their parents did not know about. On average, these add up to £5,000.

Students said they took out loans, several credit cards or two banks accounts, each with an overdraft facility, in order to get their hands on more money.

Asked why they were hiding the debts, most said they did not want to worry their parents.

One in five said they were embarrassed to admit plunging into the red.

Others said they could not bear to reveal their hidden debts to their parents because they were already helping them out financially.

Many graduates say their student debt is having a dramatic impact on their personal life.

They are delaying getting married or buying a home because they want to get back in the black before taking the plunge.