Desperate parents turn to kids’ savings accounts
Many parents have plundered kids’ savings accounts during the recession. More than one-fifth of parents have been so strapped for cash that they have dipped into their children’s savings accounts, new research has found.
A survey of 3,000 parents by child trust fund provider Engage Mutual Assurance found that, of those who had borrowed from their children, 44% had taken between £200 and £500.
Two-fifths of borrowers explained that they would have been unable to pay their bills without withdrawing their children’s cash, while 12% needed the money to pay for house repairs.
However, 14% admitted that they had put some of their children’s savings towards a family holiday and 8% had borrowed in order to finance Christmas.
Karl Elliott, marketing director at Engage Mutual, pointed out that the majority of parents who have borrowed money from their children “have only done so because they found themselves in a desperate situation”.
But he warned: “The problems occur when parents find it hard to pay the money back.”
Parents who want to set up a savings account for their children have a range of products to choose from, including the Halifax Children’s Regular Saver, the Barclays Children’s Saving Account and Abbey’s Flexible Saver for Kids.
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