Parents 'borrow from their children's savings'

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Parents 'borrow from their children's savings'

Mon 21st Dec 2009

Parents are increasingly looking to borrow money from their children for a source of income, according to Engage Mutual Assurance.

In a survey of 3,000 consumers, it was found that one in five had been loans money by their offspring, with 44 per cent of this number taking between £200 and £500.

But it is not an easy decision for many parents to make, as 30 per cent feel guilty that they have taken money from their child's savings, with 27 per cent sad that their own financial situation has got so bad they have had to use their kid's money.

Karl Elliott, marketing director at Engage Mutual, said: "It is evident from this survey that the majority of parents who have borrowed money from their children have only done so because they found themselves in a desperate situation."

Earlier this year, Engage Mutual Assurance urged parents in low-income families to check how much money they can receive from the government to be put into the Child Trust Fund for their offspring.

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