Adults raid savings accounts to help parents
25 August 2010 11:15:00
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| Many adults are issuing handouts to their parents. |
The Scottish Widows Savings and Investment Report suggests that the average amount given or lent to parents has risen from £6,500 in 2008 to £8,250 in 2009.
Over a third of parents who have received a handout from their adult children revealed that they used the money to pay off debts, while 33% needed the funds for day-to-day living expenses.
Meanwhile, 16% said that the money had been used to purchase a house or put down a deposit.
Iain McGowan, savings expert at Scottish Widows, observed that "the bank of mum and dad has decided to call in its debts".
"At a time when most people are tightening their purse strings, families have to resort to helping each other out and this is likely to become ever more prevalent," he predicted.
Meanwhile, a survey by Engage Mutual Assurance, published in December 2009, found that one in five parents had borrowed from their children's savings account, with 82% hoping to pay the money back as quickly as possible.
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