Turning to the bank of mum, dad ... and pals
MANY of us are feeling the pinch more than usual with Christmas just around the corner.
It’s a time of year when credit cards and overdrafts are commonly used as ways to cope with money shortages.
But there’s new evidence that young people are instead turning to friends or relatives, rather than their bank, when they are strapped for cash.
Two-thirds of 18 to 24-year-olds have approached family or friends for financial help, according to a recent survey from money advice charity National Debtline.
Those who owed money to family or friends borrowed an average of £2248 – with parents the most likely people to be approached for a bit of cash.
Two-fifths (39%) of those who turned to family or friends for financial help did so to cover basic expenses such as food, rent or travel, the survey found.
And it’s not just the young who are relying on family to help them pay their bills.
Research from Co-op Legal Services found two fifths (42%) of people have already mapped out how they plan to spend an inheritance they are expecting to get – but have not yet received.
But pinning your hopes on such a legacy could spell problems further down the line.
The Co-op found that many older people already had plans for their hard-earned cash – which didn’t necessarily involve their offspring.
A fifth (21%) of people aged over 50 said they had less in the pot to pass on as an inheritance to their loved ones than they had hoped.
One in three (35%) said this shortfall was due to them retiring earlier than planned.
Talking with family members about your plans for the future is a good way to resolve any misunderstandings.
James Antoniou, head of wills at Co-op Legal Services, says there is often a “breakdown in communication” when it comes to later life planning.
Having conversations about wills can help manage people’s expectations – as well as helping to avoid disappointment and possible disputes, he says.