Parents dip into childrens’ savings
Moneysupermarket.com research claims that one in three parents with children under the age of 18 are either taking or borrowing their offspring’s savings.
The average amount parents took from savings was £50.26, while 16% confessed to filching at least £100 from their child.
The majority said they needed the money to help pay the bills (27%), 20% said they needed it for small change, while 17% said it was used for petrol money. Other reasons included the weekly grocery shopping (16%), for a takeaway (13%) and for taking their child out as a treat (13%).
Kevin Mountford, head of banking at MoneySupermarket said:
“It’s a sign of the times when parents feeling the economic pinch have no resort but to dip into their children’s savings or piggy bank. We all have moments where we need to get our hands quickly on some small change – to pay for takeaways, the milk man or a local charity collection, however it’s shocking to see kids money is often needed for everyday living costs such as paying bills, money for petrol or groceries; this really indicates the financial strain households are still under as news of rising costs continue to hit consumers. In 2012, children received £5.98 in pocket money a week on average which adds up to over £300 in a year- a sizeable amount, so it’s easy to see why parents may be tempted to put this towards everyday living costs.
“However, reviewing all of your outgoings to see where you can get better value and free up vital cash is essential. The savings made can literally add up to hundreds of pounds over the course of the year, a great way of giving yourself a bit of breathing room. To help boost your child’s savings, and to prevent the temptation of dipping into them, locking money away in a children’s savings account rather than their piggy bank is a good idea.”