Bank of Mum & Dad needs advice
18 July 2020
Nearly a third of parents are concerned they do not have enough financial know-how when it comes to giving money to their children, new research from Openwork has revealed.
Its nationwide study found 32% of parents would value financial advice on how best to give money to their children, while 62% would welcome Government-backed guidance on how to make gifts and loans.
Meanwhile, seven out of ten (71%) parents would like to see tax incentives to help children on to the housing ladder.
Separate research by the London School of Economics found families lent or gifted over £6 billion to help offspring onto the property ladder last year, with an average donation of £24,100.
However, Openwork’s research also showed that many parents feel funds should only be used for emergencies, with 60% believing financial support should be a last resort.
John Cupis, mortgage director, Openwork, said: “As part of one of the UK’s largest mortgage lenders, parents clearly feel they need more financial insight to enable them to make the most appropriate decisions on helping children financially.
“It seems that few take legal or financial advice and considering the sums often involved, it would be a good idea for parents to seek financial advice from a qualified financial planner so that they are able to make sound, rational and above all sensible decisions.
Cupis added: “Parents are often faced with a difficult choice between supporting their children or investing in their own retirement. This is when a financial adviser can really help, talking through the available options to ensure wherever possible they can both support their children and have enough income available for the future.”
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