Children ‘return the financial favour’

Young adults who rely on their parents for financial support are finding themselves returning the favour, it has been claimed.

According to Scottish Widows, adult children are giving back £11 billion to their parents in later years – an average of £6,500 each.

“It is obvious that parents have felt the pinch as a result of being ‘sapped’ for thousands of pounds from their adult children, and are now turning the tables on them and ‘sapping back’,” remarked the bank’s savings expert Anne Young.

Ms Young added that over a third of these parents had spent their retirement funds on their children earlier on and had now found themselves out of pocket.

A third of the parents used the money from their offspring to pay off debts, 15 per cent used it to purchase a car and 14 per cent claimed they needed it for spending money and general living expenses.

This week, the Council of Mortgage Lenders stated that as first-time buyers have no access to 100 per cent mortgage products anymore, family is becoming their only source of financial assistance for a housing deposit.

© Adfero Ltd

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