PenPenWrites

For many of us, gone are the days when we could open our wallets with ease and help our grown children when they were in need–paying off a college loan, helping with the down payment on a house or even defraying everyday living expenses. Now our 401ks are half of what they were, the value of our homes has shrunk. Our personal sense of wealth is melting away. And yet the kids still have needs–needs we want to fill. Not just to ease their way but because right now it may be tougher for them at the beginning of their careers than it is for us at the tail end of ours.

It appears to be the same rough go for the Brits. A recent study by Scottish Widows (must find the origins of that name!) found that adult children were sapping their parents and
grandparents of large amounts of money, forcing them to cut back on daily
spending and to take on more debt.

The research showed that one in six of those parents who have given money to
their children have increased their own levels of debt, while one in ten
have had to put a stop to any kind of savings of their own in order to fund
their children. Moreover, nearly a quarter of adult children or grandchildren are using or have used
parental handouts to fund their day-to-day living expenses or spending
money. Over a third needed the money to pay off debt, and 30 per cent needed the cash
for a house purchase.

Here's one other point from the research: Of the 6,000 adults surveyed, almost
half of those that have already given money
to their children expect to dig deeper and
give them more in future.