Financial problems 'forcing parents to dip into kids' savings'

A number of cash-strapped parents have had to use some of their children's savings in recent months to deal with financial concerns, new figures suggest.

Engage Mutual Assurance has published survey results which show that over 20 per cent of those queried have resorted to such an action in recent months.

The firm's marketing director Karl Elliott believes that desperation has been the primary motivation for parents who have made use of their children's money.

He said: "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."

According to Engage Mutual Assurance, 82 per cent of survey respondents have outlined plans to replace the money they have taken.

Households with credit card debt and other financial difficulties were recently advised to draw up financial budgets by MoneyMagpie.com's founder Jasmine Birtles.

Written by Tom Burroughs.