Bank of Mum & Dad “shielding” children from financial realities
THE BANK of mum and dad may be renowned for funding mortgage deposits, but now it is running savings and investment portfolios for its children as well.
Research by Investec’s online investment platform Click & Invest found only 52 per cent of parents believe it is important for family members to make their own way financially, leaving a significant number resigned to giving them a helping hand.
And 46 per cent of parents said they were reluctant to have conversations with their family about money.
The research found people with children tend to have more money put into savings and investments, at an average of £28,700 for a family with one child or £31,700 for those with two or three.
Those without children on average have £27,000 in savings and investments, according to the research.
Jane Warren, chief executive of Investec Click & Invest said there was a risk that children were being shielded from the financial realities of life.
“Our study shows that parents recognise the huge financial pressures facing the younger generation and are focusing on providing a financial boost,” she said.
“This may also suggest that parents are sheltering their children from the financial realities of adult life, anticipating the challenges later in life. This means that it is now more important than ever that parents help educate their children about the importance of saving and investing at a young age.”
Read more: Household savings rate hits record low
Read more: Cash ISA savers left £4bn short by inflation