Consumer: Parents are helping children out of debt

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A new study has revealed more young people in Yorkshire are now relying financially on their parents than ever before.

Around two-third of parents in the region still have their children– aged 18 and over – living at home without charging them rent to ease their financial strain.

Research by TopCashback.co.uk reveals that 47 per cent of parents feel they weren’t taught enough about money management by their own parents.

They claim this in turn has had a knock-on effect on the way their own children manage their finances.

Nearly 35 per cent of the region’s parents confessed they could have taught their children more about money management.

However, 65 per cent of parents in Yorkshire and the Humber feel they’ve taught their children enough about managing their finances to become financially independent.

More than 20 per cent of parents say their children are “savvy savers” and around a quarter even describe their kids as “thrifty”.

More than half of the region’s parents claim giving their children an allowance and making them budget their own spending has been the best approach to teach children about money management.

Lindsey Casey, PR manager at TopCashback, said: “We can see from these figures that for young people across Yorkshire and the Humber, it’s a struggle to become financially independent without the help of their parents.

“With increasing rental prices and a lack of jobs available, many are facing debt that they’re unable to reduce.”

Over half of parents in Yorkshire and the Humber would not trust their children with their personal credit card and around half believe the best age to teach children about managing their finances is between six and ten.

The study shows that 45 per cent of parents do not think their children know how to budget their finances effectively

Lindsey Casey said teaching children about money management from a young age would help to prepare them to become financially independent adults.

She added: “The research findings highlight the increasing importance of teaching children about money management and budgeting at a young age to help them become financially independent adults.”

“Parents can help their children budget in many ways, from giving them an allowance to asking them to contribute towards the rent and household bills.

“Passing on money-saving tips and tricks will also help children learn about saving and becoming savvier with their money.”