Abacus Daily Debt News

Generous parents ‘may be undermining their own finances’

Mothers and fathers who try to provide for their children’s future may be leaving themselves in financial difficulty and in need of debt managment advice, new research has suggested.

According to a survey by The Children’s Mutual, savings made by parents are often used to fund their children’s university plans or first homes.

Chief executive of the organisation David White said: “We are highlighting to parents of younger children that by starting to save for their child’s future now, they can help avoid the struggles faced by the baby-boomer generation.”

Faced with choosing between planning for retirement and the future of their children, parents frequently sacrifice their own aspirations to help their sons and daughters, the statistics show.

The figures revealed that 28 per cent of 25-year-olds are provided with some type of funding towards education.

In recent news, Laith Khalaf at Hargreaves Lansdown stated that people who do not properly prepare for their retirement could face a “miserable time” on a state pension.

By Francis Finch