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Parents step in to fill savings and income gap

Young adults still relying on their parents

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More than a third of young people are being forced to borrow money from their parents just to meet their daily living costs, research showed today.

Around 35% of people have relied on handouts from their parents to fund their day-to-day living expenses, while 38% have borrowed or been given money to pay off debts and 34% have needed it to buy a home, according to Scottish Widows.

Visit our guide to help get your kids on the property ladder.

Overall, 47% of parents said they have given or lent money to their adult children or grandchildren, handing out an average of £13,660 each.

More than half of parents who have already given money to their adult children expect to have to help them out again, with people expecting to have to hand out a further £14,159 on average.

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Parents tap into their own savings

Iain McGowan, savings expert at Scottish Widows, said: ‘On the one hand, ‘generation Y’ is looking ever more to its parents for help as it struggles to get jobs, credit and mortgages, and to clear debt.

‘At the same time, the Bank of Mum and Dad is not as readily available as it once was, often for the same reasons.

‘This means that fewer parents can afford to give or loan money, while those who can are being asked to provide more.’

Eight out of 10 parents who gave or lent their children money had to fund it from their savings, and 54% of these do not think they will be able to top up their account again.

If you are topping up your account check to to make sure you are getting the Best Rate.

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