The new report found that on average, parents surveyed have stumped up over £6,000 to help their ‘financially independent’ children out and it seems that a lack of basic money management skills is often to blame.
Experian highlighted that 41% of parents whose children have asked them for financial support were called upon as their child had no savings to cover for an unforeseen expense. Almost a quarter (24%) admitted 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 and 22% of parents have also supported their children with a deposit to help them get on the property ladder.
72% of parents who were able to provide financial support to their children have drawn on their own personal savings or had the flexibility to draw on their regular income (36%). Just over one in ten (13%) of parents surveyed had to rely on credit to be able to access the cash required.
Sarah Willingham consumer champion, Mum of 4 and BBC Dragon, commented: “Without doubt any parent would do whatever they can to help their child when needed. But when it comes to offering financial support, without giving our children the tools they need to understand how to manage their money later in life we can’t assume that they will just pick it up – especially knowing that most never receive any financial education in school.
Financial education needs to be higher on the Government agenda as the benefits of developing a more financially capable society would create more engaged consumers with better employability and greater entrepreneurialism.”
Clive Lawson, Managing Director at Experian, said: “These results show the extent to which many ‘financially independent’ adults are still struggling to take control of their finances. As the UK’s largest credit reference agency we bear witness every day to the benefits that can be experienced from knowing how to manage money and credit well and also the hard lessons learnt when people get caught in a cycle of unaffordable debt.
Parents have such a crucial role to play in helping shape children’s attitudes and behaviours towards money but it is a big responsibility and they don’t get enough support. Many of us learnt how to manage money well the hard way, but our children can benefit from these lessons if we can find the right way to teach them this essential life skill.”
