Over one in five recession-hit British parents have turned to their children's
savings accounts to stay afloat, according to research which suggests 44 per cent have borrowed between £200 and £500.
Of the 3,000 parents surveyed by child trust fund provider Engage Mutual Assurance, 82 per cent deemed the money they've taken to be no more than a loan which they intend to pay back when their financial situation picks up again.
Paying bills and covering unexpected car and house repairs were some of the most common reasons cited by parents who have turned to their children's
savings accounts.
Engage Mutual's Karl Elliott commented that the majority of parents who have borrowed money from their kids have only done so "because they found themselves in a desperate situation".
"Almost six in 10 adults admit their financial situation has significantly worsened over the past 18 months," he continued. "And whilst it might be possible to budget for everyday spending and the usual bills and direct debits, it is the unexpected costs which people find hard to cope with."
Figures show that nearly 70 per cent of children in the UK have less than £1,000 in their
savings accounts.
