9 million parents want to help kids stand on own two feet
Investor Today, 12 Jun 2013
Four in ten parents try to help out their grown up children as much as possible financially, although almost two thirds (63%) admit there are times when they are unable to - potentially because it will impact their own financial future, according to research from Amigo Loans.
More than four in ten (44%) parents would lend money to their adult children if they were able to prove the money would be put to good use.
When it comes to parents' views on lending money to their children, parents expressed a strong desire for them to be independent - 29% of parents would rather their adult children stood on their own two feet, and a quarter (24%) don't want to hand everything to their children on a plate. A further 12% said they'd like to see their children build their own credit score as this will help them financially in the future.
Nearly half (45%) of all parents would be happy to act as a guarantor for their grown up child, with 50% believing it is a good way to help a child financially without them having to part with the money. A third (30%) were willing to do so to help them reach a career/ business goal and half (53%) agreeing it's a good way of helping their child to take responsibility for their own finances.
James Benamor, founder and CEO of Amigo Loans said: "Every parent wants to do everything they can to help out their kids but dishing out the cash isn't always the best way. It means they can't build up their own credit history to stand on their own two feet, plus parents are left out of pocket. Many people going into their 30s still have a very low credit score so can't access financial products they need, whether it's to buy a house or start their own business."
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