Abacus Daily Debt News

Indebted parents ‘dipping into kids’ savings’

Parents struggling with debt and money troubles have been turning to their children’s savings accounts as a way to make ends meet.

This is according to a new survey by Engage Mutual, which revealed that one in five are doing so, with almost half taking between £200 and £500.

Marketing director at the company Karl Elliot noted that this could be down to "unexpected costs" arising, with nearly 60 per cent stating that their finances have suffered in the last 18 months.

"The problems occur when parents find it hard to pay the money back," he said, adding that the majority of mothers and fathers taking such action only do this after they have "found themselves in a desperate situation".

However, recent research from the Post Office found that adults are also cutting back on goods for themselves, such as clothes and food.

The Daily Mail reported that grown-ups are spending £35 less a week on fuel and attire, while the London School of Economics indicated that kids are receiving on average £6.84 a week in pocket money - a rise of more than 500 per cent from the levels in 1987.

By Sarah Adie