Bank of Mum & Dad under financial pressure - Money - News - Moneyfacts

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Bank of Mum & Dad under financial pressure

Bank of Mum & Dad under financial pressure

Category: Money

Updated: 19/05/2016
First Published: 19/05/2016

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Bank of Mum & Dad is often called upon by children who have flown the nest, but unfortunately, research from Experian has found that many parents have been struggling as a result.

The research found that 33% of British parents who've provided financial support for their children have been put under financial pressure as a direct result, and considering that parents have stumped up an average of £6,000 to help out their offspring, it's little wonder.

The figures went on to reveal that parents have been called upon for help an average of four times, but much of it could be due to lack of money management skills: 41% of those parents were asked for help as their child had no savings to cover for an unforeseen expense, while 24% said that their child simply ran out of money and 15% said that it was because their children were in debt that they couldn't afford to repay.

Other reasons have a slightly less fraught feel about them, with 22% of parents surveyed having also supported their children with a deposit to go towards their first home. Nonetheless, whether the gesture is out of the goodness of their own hearts or a way to help get their children out of trouble, it can't be denied that this kind of financial assistance can take its toll.

Indeed, 72% of parents who were able to provide financial support to their children did so by drawing on their own personal savings, while 36% used their regular income, but 13% had to rely on credit to be able to access the cash required.

"These results show the extent to which many 'financially independent' adults are still struggling to take control of their finances," said Clive Lawson, managing director at Experian. "Parents have such a crucial role to play in helping shape children's attitudes and behaviours towards money, but it is a big responsibility."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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