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Children of debt-laden parents less likely to borrow

Tahmina Mannan
Written By:
Tahmina Mannan

Young adults who had debt-laden parents while growing up are less likely to end up in financial difficulties, a new study has revealed.

Discount website myvouchercodes.co.uk surveyed 2,188 young Brits aged between 18 and 25 on their financial attitudes.

Nearly 60% who had parents regularly in debt claimed said they would ‘never borrow money’ with the exception of a mortgage. When asked why this was the case, the majority, 61%, said it was so that they ‘didn’t end up like their parents’.

Mark Pearson, chairman of MyVoucherCodes.co.uk, said: “The results to this poll were really interesting. Clearly it’s not the case that children of parents that were no strangers to debt are more likely to see borrowing as acceptable and nothing to worry about.

“Young people who’ve experienced debt growing up obviously don’t want to follow in the footsteps of their parents and I can only see that as a positive thing. Unless it’s for something like a mortgage – and let’s face it, who has the money to buy a house outright these days – debt should be avoided at all costs.”

All respondents said that they would have to be on £10,000 worth of debt before they start to seriously worry over their finances.

This follows a recent report by the Government-backed Money Advice Service, which found adult money habits are formed as early as the age of seven.

The report found that parents have a ‘powerful’ influence over their children’s future money habits.

Based on evidence in the report, the Service urged parents not to underestimate the effect their own good – and bad – money habits will have on their children.

It said that a combination of good habits at home combined with simple and playful parenting and teaching resources is required in order for children to develop good money management skills, which are essential to help them become financially capable adults.