Parents helping children in debt

More than half of parents have handed out thousands of pounds to their children, often to help them get out of debt, a survey has shown.

Around 55% of parents said they had lent or given money to their children or grandchildren, handing out an average of £12,610 each, according to Scottish Widows.

At the same time, there has been a steep increase in the number of children turning to their parents for help, with just 39% of people saying they had given money to their children when the same research was carried out last year, compared with 55% now.

The majority of parents also do not expect the handout to be a one-off event, with 52% saying they are likely to have to help their child out in future, expecting to lend or give them a further £11,585.

The main reason people gave for lending money to their child or grandchild was to help them get out of debt, cited by 42%, nearly double the 22% who said the same thing last year.

A further 29% said they handed over the cash to help their offspring get on to the property ladder, with the same proportion lending or giving money to help their child buy a car.

But 22% of those questioned said their children simply needed the money to meet their living expenses, while 18% used the cash to furnish their home and 14% put it towards the cost of their education.

More than a third of parents admitted that the money they gave their children was cash they had saved towards their own retirement, but despite this 63% of all parents said they were happy to help their children and 34% said it was what parents did these days.

Four out of 10 parents also said they thought their children needed the money more than they did.

YouGov questioned 5,783 people during January and February.

News Source: http://www.money.aol.co.uk/