Industry News
Calling on the bank of mum and dad
Posted on 28th February 2008
New research from Scottish Widows Savings and Investment has found that children are increasingly relying on their parents for financial support into adulthood.
With the rising cost of buying a house and attending university, children's dependence on their families has increased at a "rate of knots" over the past year, according to the study.
Last year, 39 per cent of those surveyed admitted to giving or loaning money to their offspring, compared with 55 per cent today.
The average amount their parents give to their children or grandkids is £12,610.
As the credit crunch hits, mortgage lenders are increasingly asking buyers to put down a significant deposit, which is difficult for many young people to raise.
Student debt is also a growing problem, with many people now graduating from university with debts of up to £20,000 to clear.
Paying off debts emerged at the main reason for giving money to children, followed by buying a property.
Many parents are also currently struggling to pay for their younger children's education, as private school fees have risen by 40 per cent over the last five years. 