Debt ridden parents raiding children’s savings

A recent report has suggested that many parents in the UK who are bogged down with debt and struggling to make ends meet financially are now having to delve into the savings that they had put aside for their children’s education in order to be able to afford bill payments and essential living costs.

With the cost of living having soared to such a high level and with wages having been frozen for so many people, many households are now finding it increasingly difficult to cope with their financial obligations. The recent energy hikes will have simply tipped many households over the financial edge, which has resulted in many now having to raid money that they had put aside for the future of their children to try and make ends meet.

According to the results of a recent study around 2.7 million people have now been forced to take money from an account that had been created to put money aside for their kids’ education. Around a third of the value of these funds is said to have been withdrawn on average. It has also been revealed that around 1.3 million households are now worse off than they were nine months ago due to soaring bills.

It was also revealed that many people whose kids were in private education or planning to go into private education had been affected by financial issues and had been forced to make some difficult decisions with regards to their kids’ education.

One official said: “The rising cost of living is placing a major strain on household finances. Many of those who are already paying for private education are facing some tough decisions over the summer. Some have decided to reduce the amount spent, while others have had to withdraw children from private education. Our research shows that many people have been unable to save adequately for private education and of those who have, other financial necessities have forced many to raid their educational funds.”

Tags: difficult decisions, Personal finance, private education, financial necessities, tough decisions, debt, financial issues

Filed under: News

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