Parental ‘banks’ closing

According to Bradford & Bingley, within two generations parents will not be able to rescue children from debt due to financial problems of their own and the rising cost of property and university fees.

Steve Potter, head of savings for Bradford & Bingley, said; “If this trend of parents expecting their children to save rather than parents bailing them out continues then the bank of mum and dad will be hanging up the ‘closed’ sign in two generations’ time.

“This makes it all the more important for parents to encourage their children to save from birth.”

He blamed this decline partly on the better pension schemes and property wealth growth for people in their 40s and 50s, leaving those in their 20s not feeling as wealthy.

This could be due to rising student debt and other levels, yet it highlights the need for people of all ages to consider taking advice on becoming debt free both for their own and their offspring’s future financial happiness.