Recession forces parents in UK to raid kids' piggy banks: Survey
26 Dec 2009
With the UK facing its worst recession since World War 11, more than one in five UK parents have had to borrow from their child's savings account out of sheer desperation.
In a survey conducted on 3,000 parents across the UK for child trust fund provider Engage Mutual by OnePoll in December 2009, showed that 44 per cent of parents have borrowed between £200 and £500, the majority of them, having taken the money in the last five months.
Eighty two per cent of parents who admitted to borrowing, claim the money they have taken, is merely a loan, and they intend to pay it back as soon as they can.
Hoghlights of the study:
- Almost six in 10 adults admit their financial situation has significantly worsened over the past 18 months.
- Unexpected car repairs, house repairs and other bills have meant they have been forced to find extra money from somewhere.
- And eight per cent of them admit they would not be having a very Merry Christmas without a little 'pocket money' borrowed from their kids' savings.
- In 60 per cent of cases, between £200 and £5,000 has been taken out of children's savings. Forty per cent of those parents forced to turn to their kids' savings say they did so to pay the bills, and a fifth had unexpected car repairs to contend with.
- Fourteen per cent admitted they had used the money to pay for a family holiday, while 12 per cent had borrowed it for house repairs.
- Thirteen per cent of those who borrow from their kids say they don't know where else to get the money from quickly, and almost two thirds of parents do so only when there is no other alternative.
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.
"And whilst it might be possible to budget for everyday spending and the usual bills and direct debits, it is the unexpected costs which people find hard to cope with.
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