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Parents 'raiding kids' savings accounts'

Parents 'raiding kids' savings accounts'

A significant number of mums and dads are raiding their children's saving accounts in order to meet essential financial commitments, it has been revealed.

New research has shown that a significant proportion of parents are draining their children's saving accounts">saving accounts.

Figures released by Engage Mutual Assurance indicate that around a fifth of mums and dads admit to borrowing from their children's UK accounts.

Of such people, 12 per cent claim they did so in order to pay for repairs to their home, while 40 per cent of respondents took such action to meet demands for payment on household bills.

Karl Elliott, marketing director for Engage Mutual, states: "It is evident from this survey that the majority of parents who have borrowed money from their children have only done so because they found themselves in a desperate situation."

In 44 per cent of saving account raids, between £200 and £500 was taken out.

Meanwhile, those looking to compare saving accounts could be interested in recent guidance from lovemoney.com writer Jane Baker who noted that a cash ISA is "probably the most lucrative method" way for tax payers to save money.

By Bret ClementADNFCR-2079-ID-19526210-ADNFCR
Tuesday, 22 December 2009 00:00
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Comments (2)

The comments listed below are opinions held by the individuals posting and are not endorsed by, or representative of opinions held by which4u.co.uk. We cannot be held responsible or liable for the accuracy or content of any comments submitted. We reserve the right to publish, remove or edit comments as we see fit.
  • Ewan Watson(Dundee) 2009-12-27 22:07:03
    Surely,the reason for giving children their own accounts is to teach them the best ways of saving for themselves,and not just a means of providing an extra facility for a parent.
  • Stephanie (London) 2010-01-31 00:36:47
    My father saved for me until i was 18 and then spent the money on a new harley!!! I think it should be illegal for parents to take the money away they have saved to give their children a better future. Maybe thats why todays youth is so bad, because parents are putting themselves before their children.

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