15 Jun 2016

Study reveals Aberdonians don't like parting with their money

Study reveals Aberdonians don't like parting with their money

 

Scottish parents have loaned out over half a billion pounds over the past year, according to new research.

A Bank of Scotland study, which looks at family debt, identified that the average Scot owes their parents £3,079.

It also found that people in Aberdeen were the 'most annoyed' at having to lend money to family.

Help on the property ladder

With 28% concerned about their children’s ability to buy their own home, it is likely that most of this borrowing is going toward funding a deposit to purchase a new home.

The majority of people lending money to family members (52%) were positive about this and indicated they were happy to help out.  However, over a fifth (21%) said that they don’t ever expect to be paid back.

Almost half of borrowers (44%) feel guilty about borrowing money from family members. Despite this, almost a tenth (9%) don’t ever expect to pay their family member back. High levels of family debt does not seem to have had a significant impact on family ties with only 8% believing it has caused tension.

Over 65s make up the biggest share of ‘Bank of Mum and Dad’ lending, contributing over 60% (£366million) to the £582million total.

The findings show that over a quarter (26%) of over 65’s are lending money to family members with the average loan to children totaling £4,022. A fifth (20%) of loans to children are for amounts over £10,000.

There are a number of regional variances within the research:

  • Highlands and Islands and Glasgow both felt the guiltiest about borrowing money (52%), Dundonians felt the least guilty (24%)

  • Nearly two fifths of Fifers (39%) don’t ever expect to get their money back when lending to family members

  • More Glaswegians don’t expect to pay their family back compared to anyone else (13%)

  • Aberdonians are the most annoyed at having to loan money to family members, with 24% saying this has had an impact on their own life. Fifers were the least annoyed (3%)

Personal financial planning

Aberdein Considine has a national network of independent financial planners who can help you plan for your child's future.

We can help you with trusts, savings and investments and mortgages.

To speak to one of our experts, call 0333 0044 333 or click here.


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