Young adults’ debts ‘draining parental savings’

The debts accumulated by young adults around the UK are proving to be a major drain on the savings set aside by their parents, according to recent research.

According to a study by Scottish Widows, most British parents with adult children have helped their offspring out financially and in 42 per cent of cases, the handouts have been used to clear debt.

Millions of parents have loaned or given their grown-up children money and in total their generosity has been worth as much as £67 billion to the younger generation, the latest figures have indicated.

Furthermore, the rising prevalence of debt management problems could have played a part in seeing 16 per cent more Britons ask their parents for money this year than was the case 12 months ago.

Anne Young, savings expert at Scottish Widows, said: “It seems that although people could well be tightening the purse strings at a time when the credit crunch could affect finances, adult children are still managing to extract what they can from mum and dad.”

Price comparison firm the Fool.co.uk claimed last week that when it comes to your bank balance it pays to be single.

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