Wednesday, June 22, 2011
Category:
Consolidation
According to Clydesdale and Yorkshire Banks, ‘parents are raiding their children’s piggy banks when they need a little extra cash’. In fact, their research revealed that 57 percent of the parents surveyed ‘don’t think twice’ before borrowing money for their children.
It was found that 43 percent of mothers and 23 percent of fathers borrowed money from their children when they needed change. Furthermore, 13 percent of respondents were found to have borrowed money from their children because they were ‘broke’. Just 3 percent of respondents reportedly admitted to not repaying borrowed money.
Despite 57 percent of respondents borrowing money from their children, 78 percent are saving for their children’s future. The research uncovered that 10 percent of parents with children in primary school are saving for their first car, whilst 8 percent are saving for their first property. Money is being set aside for ‘general use’ by 53 percent of parents, whilst others are also saving up for their children’s education and wedding.
In addition to setting money aside for their children’s future, Clydesdale and Yorkshire Banks has revealed that parents are also keen to educate their children regarding the value of money and the importance of saving from an early age. Findings have shown that 53 percent of the parents surveyed are teaching their children to save money in a piggy bank. Meanwhile, 33 percent of the parents surveyed have reportedly opened a bank account to encourage saving. Additionally, 50 percent of parents were found to be offering their children the chance to earn money by doing chores around the home.
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Homeowners who may be struggling to set money aside for their children’s future due to juggling expensive debt repayments each month could consider taking out a secured loan to tie these debts up. One of many finance options available, a secured loan for
consolidation could allow borrowers to replace several debt repayments with a single monthly repayment, which could be lower than the sum of current outgoings. Any extra money that is freed up each month could then be set aside in a savings account if desired. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
