Tag Archives: bank of mum and dad

The pressure of running the Bank of Mum and Dad

poor family counting money to pay bills at homeThe Bank Of Mum and Dad is often thought of as a bottomless pit of financial assistance for children needing a leg up after they’ve ‘flown the coop’ – but a third (33%) of parents have been under financial pressure as a result of bailing their children out financially.

Over half the parents Experian surveyed[1] last month said their children (aged 18+) have ‘used’ the Bank of Mum & Dad an average of four times –  and to the value of £6,000 –  since becoming financially independent.

Some recent findings have also shown that parents will provide £5bn this year to help offspring on to the property ladder.

*Check out our tips for young people breaking away from the bank of mum and dad*

The slippery road to financial independence
Our research found that 41% of parents were called upon as their child had no savings to cover for an unforeseen expense, with almost a quarter (24%) admitting that their child is simply bad at managing money and ran out of money. 15% of children had to ask for help as they had got themselves into a debt they couldn’t afford to repay. Continue reading

Leaving the bank of mum and dad: the challenges

Young people are often keen to break away and get financially independent, but in doing so there are many financial responsibilities & challenges they might have to deal with.

With student loans and overdrafts taking years to pay off, just how long can young people realistically keep milking the Bank of Mum and Dad?

Signs that you might be ready for financial independence
Sometimes it’s just about being able to rein yourself in when you really, really want to splash out on something you don’t need and can’t really afford, like a luxury item you know you can do without, or a pretty framed picture you’ll have forgotten about minutes after you’ve left the shop. Continue reading