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Parents 'giving handouts to grown-up children'

Many parents are still giving handouts to their grown-up children, according to new research.

Figures from Scottish Widows showed that more than ten million adult children have borrowed an average of £12,300 from their parents.

This works out to a total of £55 billion, which is six per cent of the overall cash savings market in the UK.

The research also suggested that the amount that people are borrowing from their parents has increased over the last 15 years and is continuing to grow.

Anne Young, a savings expert at Scottish Widows, said: "Our research shows that parental responsibility no longer ends when your children reach adulthood but lasts for many years after that.

"Parents may be shocked to learn that their savings could be sapped by about £12,000 after their children leave home."

She added that parents should prepare for the possibility of this happening by creating their own savings fund to subsidise their children.

The research highlighted various popular reasons for people to borrow money from their parents, such as paying for a car, purchasing a house and paying the deposit on a property.

This follows a survey by GE Life in which 64 per cent of over-50s said their children need their financial assistance, while almost half said they feel obliged to help out.

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05/03/2007 15:58:43

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