Thirty one per cent of parents borrowed money from their kids at least once during 2009, according to research from personal finance product comparison website,
money.co.uk.
On average, piggy-bank raiding parents borrowed £15 at a time, which equates to just under £54 million loaned to the Bank of Mum and Dad over the course of the year.
In most cases, parents borrowed from their children because they found themselves caught short for cash, though around 4 per cent (or 400,000) admitted that the ‘
loan' was to help pay for “something I wanted”.
According to the Office for National Statistics around 75 per cent of children save some of their pocket money each week, but only 28 per cent do so in savings accounts.
Unlike the high street banks, the Bank of Mum and Dad has already paid back much of its bail-out money, with 92 per cent (or £50 million) finding its way back into the nation's piggy banks.
However, 7.6 per cent 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.
"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, said Chris Morling, managing director of
money.co.uk.
“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.
"What's more, you have to wonder how much extra money our children are missing out on if their pocket money is sitting in piggy banks, rather than savings accounts. After all piggy banks don't pay interest and are not secure against parents on the hunt for ready cash."
Did you know?
- The average UK child receives £4.80 per week in pocket money
- Three-quarters of children save at least part of their weekly pocket money - 37 per cent in a building society or bank and the rest in piggy banks, wallets and other containers at home
- The average child's weekly expenditure is £7.86, 35 per cent of which goes on recreation and culture. Five per cent (or 40p) is spent on food and drinks.
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