Parents now loan or give an average of £13,000 to struggling family members, according to recent research.
Times are hard, and it seems more and more of us are seeking financial help from our own families rather than other more expensive, less trustworthy sources.
We now borrow on average £3,000 more from relatives than we did just five years ago, according to the pensions and investment company Scottish Widows.
With the cost of mortgage deposits rising massively in recent years, it is becoming increasingly harder for young people to buy into the property market. Parents are now more likely than ever to help their children onto the property ladder.
The report found that 1/3 of UK parents lend their children over £10,000, 6% of which is money taken from a bank loan. 1/5 of parents are forced to change their lifestyles and curb their spending habits in order to lend money to family members.
It appears that children are not the only expenditure- adults are increasingly lending or giving large amounts of money to their own parents. According to Scottish Widows, this involves sums in excess of £2,000.
The study has also revealed that the public’s hopes for the British economy are floundering, with nine out of 10 people expecting zero improvement within the next year.
The Scottish Widow report, although grim, offers one ray of light: Brits are now saving an average of £365 more than they were last year.
For help and advice or to find an accountant to help you with your savings, please visit our page on Personal Finances.
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