Debt fears have hit the Bank of Mum and Dad as the credit crunch takes greater hold of their disposable income. According to research by Axa Insurance, the rising cost of living means that 17% of parents have cut back on children’s pocket money.
1 in 10 parents with children aged 16-18 have stopped lending money to their children, along with 1 in 6 parents who have children between 11-15 years old. Parents are trying to offer their children better debt advice, as one in five parents are encouraging their children to save their pocket money.
Alison Green of Axa said: “The bank of mum and dad has so far been quiet on the issue of how it will deal with the effects of the credit crunch.”