Grown-up children are causing some parents to fall into debt due to their loan demands, it has been claimed.
"The Bank of Mum and Dad" should be shut permanently in many families, Addidi Wealth suggested today.
According to the wealth management firm, many British parents are flirting with debt by extending loans to their children - or just giving them money on request. This leads, Addidi suggested, to the children becoming complacent and acting as a sponge on their family's finances.
The comments follow recent research from investment specialists Skandia, which found that two in five parents see it as their own responsibility to help their offspring clear their debts. In addition, 34 percent felt obliged to provide a home for their children well into adulthood.
Anna Sofat, director of Addidi Wealth, said: "I do not think saving for children puts parents into debt - it certainly should not. My advice to parents would be to certainly help their children as much as they are able to, but without neglecting their own financial wellbeing."
She added: "Anything over and above a decent education should be seen as a bonus, not a life['s] necessity. If children are brought up to expect that they can always fall back on their parents, then where is the incentive for them to make something of themselves?"
According to charity Credit Action, collective personal debts in the UK are approaching £1.5 trillion.
