Research published today (Wednesday 22nd June 2011) has revealed that parents are raiding their children’s piggy banks when they need a little extra cash.
The survey of parents and five to 12 year olds by Clydesdale and Yorkshire Banks showed that while 78% of parents are saving for their children’s future, more than half (57%) don’t think twice when it comes to borrowing money from their little ones.
Some 43% of mums borrowed from their kids when they needed change compared to 23% of dads. Only 3% of respondents admitted to not paying back money they borrowed. More than one in ten (13%) borrowed money because they were broke.
|Parents borrowing from primary school kids||%|
|Borrowed money when they needed change||38%|
|Borrowed money because they didn’t have any with them at the time||33%|
|Borrowed money because they were broke||13%|
|Used children’s savings and paid it back||18%|
|Used children’s savings and not paid it back||3%|
Although 57% borrow from their kids, significantly more parents – a huge 78% - are putting money aside for their youngsters’ futures.
Yet, at a time when an increasing number of young people are turning to the Bank of Mum and Dad for help with a deposit for their first home, more parents with primary school children are saving for their first car (10%) rather than their kid’s first property (8%). Over half (53%) of parents are saving for general use but parents are also putting money aside for the children’s education and their wedding.
|What parents are saving for||%|
While saving for their children’s future, parents are also keen to teach kids about the value of money and the importance of saving from a young age. More than half of parents surveyed (53%) teach kids to save with a good old-fashioned piggy bank, while a third (33%) of parents opt to open a bank account to help start the savings habit from an early age. Half of parents (50%) also encourage their children to earn money by doing chores around the home.
Steve Reid, Retail Director for Clydesdale Bank, said: “It is encouraging that so many parents are not only saving for their children’s future, but also teaching kids about the importance of saving and working for their money from a young age.
“A third of parents opening a bank account for their children while still at primary school is a fantastic way to improve financial education and instil the importance of saving in children from an early age.
“The Bank offers a range of accounts suitable for young children including our Cybersave Children’s Account and a Vision Tax Exempt Savings Plan for children and it is never too early to start saving for the future.”
Customers can obtain more information on savings accounts offered by Clydesdale and Yorkshire Banks by contacting 0800 678 1230 for Clydesdale Bank or 0800 678 3380 for Yorkshire Bank (Monday to Friday 8am to 8pm) or by visiting www.cbonline.co.uk / www.ybonline.co.uk