Bank of Mum and Dad now needs bailing out
On average, piggy-bank raiding parents borrowed £15 at a time, according to the research from money.co.uk, which equates to just under £54 million loaned to the Bank of Mum and Dad over the course of the year.
Unlike the high street banks, the Bank of Mum and Dad has already paid back much of its bail-out money, with 92% (or £50 million) finding its way back into the nation’s piggy banks. However, 7.6% of parents admit their familial borrowing remains outstanding, which equates to a total debt of around £4 million – in a savings account that figure would make around £120,000 per year in gross interest!
Chris Morling, managing director of money.co.uk, said: “I’m sure we’ve all been caught short of cash from time to time, for instance when a window cleaner or milk man needs paying. In those situations there’s no shame in borrowing a few pounds from the children, providing it’s only temporarily. All the same, it’s amazing how all those relatively small loans add up when you look at the country as a whole.”