Saving ‘could help children’ affected by debt

Children who find that their requests for money are being increasingly rejected by cash-strapped parents ought to think about opening a savings account, it has been claimed.

The debt advice was offered by MoneyExpert following research from Axa which found that the effects of the credit crunch are now being passed from parents to children.

MoneyExpert agrees that remortgage costs, fuel and food prices and borrowing costs are all beginning to take their toll on parents and suggested that children should get into the habit of saving – rather then relying on loans from the bank of mum and dad.

“While high street banks can hike interest rates and fees to deter customers’ requests for cash, parents can do very little to avoid the daily handouts and requests for larger loans from their children,” said Sean Gardner, chief executive of MoneyExpert.

By Neil Condron