Parents raid savings to help kids

'Intergenerational' gifting is on the rise

Four out of every 10 parents have raided their savings to give their children a head start in adult life, a Scottish Widows survey suggests.

On average, parents gift £12,300 to their adult offspring to help them buy home furnishings, a property or their own car, the report found.

Parents also help pay off debt and meet the cost of further education.

In addition, half of parents who have already given money expect to have to do so again in the future.

Professor Merlin Stone, an economist who has read the report, said that the phenomena of parents giving to children is on the increase.

"While 39% of those interviewed have given or lent substantial sums to their children or grandchildren, only 22% of those interviewed have received substantial money gifts or loans from their parents or grandparents," Professor Stone said.

"So the paradox is that while our society is getting richer, it is increasingly dependent on intergenerational gifts. And worryingly half of these gifts are associated with the investments needed just to get started in life," he added.

About 2,000 adults were interviewed for the survey.