Parents raid kids' piggy banks ~ Debt Managements and Consolidation

With the financial squeeze increasing, more parents than ever are dipping into their children’s bank accounts when in financial difficulty, a survey has revealed.

With many parents trying to save for their offspring’s futures, a shocking 57 per cent now borrow from their children a recent survey has found, highlighting the need for professional debt advice to be sought. New figures have revealed that 57 per cent of parents now rely on their children financially, frequently borrowing from their dependent primary school aged children. The research carried out by Clydesdale and Yorkshire Banks found that one in two parents would not hesitate to borrow money from their children aged between five and twelve. Mother’s were the worse culprits with 43 per cent borrowing when they needed change, compared to 23 per cent of fathers. 33 per cent borrowed money from their children because they didn’t have any change, but 13 per cent borrowed money because they were broke. Only 3 per cent of respondents admitted to not paying back money they borrowed. However, the research revealed that 78 per cent of parents are putting money aside for their children’s future. Back in December 2009 22 per cent of parents admitted to dipping into their children’s savings, a survey by Engage Mutual Assurance found. Parents used the money for bills, car repairs, family holidays, and for covering the cost of Christmas. Whilst back in December 2009 parents were using their children’s money to cover unexpected costs, a rising number are now relying on their savings to make ends meet. Steve Reid, Retail Director for Clydesdale Bank, said: “It is encouraging that so many parents are not only saving for their children’s future, but also teaching kids about the importance of saving and working for their money from a young age. “A third of parents opening a bank account for their children while still at primary school is a fantastic way to improve financial education and instil the importance of saving in children from an early age.”
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