9 million parents want children to become financially independent

Published on 1 January 1970 by Raffick Marday

The desire harboured by parents to look after their children extends well into adult life, but a new survey has shown the extent to which people are actually willing to help their offspring become independent.

Financial independence

A study has revealed that parents expressed a strong desire for children to be independent and not need financial support with 29% of parents preferring that their adult children stood on their own two feet and a quarter (24%) wanting their kids to make their own way.

In a practical approach, 12% said they'd like to see their children build their own credit score so that they will be able to make the most of their own financial decisions in the future.

The research from Amigo Loans also revealed that 40% of parents try to help out their adult children as much as they can financially, but 63% admit that they are unable to do as much as they would like due to their own financial constraints. However, 44% parents would lend money to their adult children if they were able to prove the money would be put to good use.

Founder and CEO of Amigo Loans James Benamor 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.”

Half of the parents who responded to the survey said they would be happy to act as a guarantor for their grown-up child because it was a good way to help financially without having to personally make a loan or gift of money. Of these, 30% were willing to do so to help in career or business matters.

A good way to encourage financial independence from a young age is to teach your child the importance of budgeting with a prepaid card.

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