Parents 'giving more to children'

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Parents 'giving more to children'

Wed 25th Feb 2009

Research conducted recently by Scottish Widows has revealed that many parents are stepping in to breach the holes left in their grown-up children's finances by the credit crunch.

The pension provider found that the total amount given to adult children by parents has grown recently to £72.5 billion from £67 billion in 2008 - an increase of eight per cent.

Scottish Widows found that more than half of the parents it surveyed had given or loaned their grown-up kids a "substantial" amount of money, with the average amount being £11,776.

Gordon Greig, head of savings and investments at Scottish Widows, said: "Parents and children can protect themselves against this situation by saving regularly into a tax-efficient savings vehicle such as an ISA to help build up a 'Sap Fund'."

Recently, moneysupermarket.com revealed that people who have used their tax-free ISA allowance for ten years will be £2,700 better off than if they used a different kind of savings account.

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