The annual report by Scottish Widows Savings and Investments reveals that the average ‘Savings Sap’ (loaning a substantial amount of money to children and/or grandchildren) now stands at £13,660, compared to £11,800 last year, although the overall sap fund decreased to just over £64.3 billion (from £72.5 billion last year).
The report also indicates that almost half (47%) of parents with adult children (children over 16) have given or loaned money to their adult children or grandchildren, 9% down on 2009. Of those loans, 35% were for day to day spending and living expenses (compared to 25% last year), whilst 38% were to pay off debt and 34% needed the cash to purchase a home.
The immediate effect the saving sap fund has had on parents is also alarming. 82% of parents who gave money to family members …
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