‘Bank of mum and dad’ hands out loans
Adult children are turning to their parents to provide them with the necessary financial backing they need in today's debt-laden society, new figures suggest.
According to Scottish Widows, 42 per cent of children have used the loans from their parents to pay off debts.
Professor Merlin Stone, a leading economist, explained the situation, saying: "Young adults are facing increasing levels of debt as well as steep house prices, so are increasingly turning to their parents for hand-outs to help with these financial drains."
House purchases and deposits were the next financial outlay children needed help with, followed by the cost of a car and living expenses.
The average amount parents' loan to their children is £12,610.
Furthermore, 52 per cent of parents who have already given money to their adult children expect to do so in the future.
In other news today, Fool.co.uk has stated that couples who are first-time buyers are in a better financial position than singletons looking for their first property.
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