Nearly half - 44 per cent - approach their parents to bail them out of financial fixes while another 26 per cent prefer to borrow cash off siblings, grandparents and cousins. And the adage of charity beginning at home rings true with ten times more people willing to lend money to family than those who would only put their hands in their pockets for friends.
The research, conducted by the Virgin One account, shows that families score highly for advice, as well as the readies, for although men prefer the expertise of a finance professional, wives and girlfriends prefer to speak to their family for advice on budgeting. Only 13 per cent would seek advice from their friends.
Although calls for cash are often small, a growing number of parents are helping their children onto the first rungs of an increasingly expensive property ladder as well as helping with other large traditional bills, such as for weddings.
James Duffell from the Virgin One account said: “It is not surprising that so many people still see their parents and wider family as a financial safety net. They’re often looking for money quickly, at low cost and with flexibility over when they can pay it back. Most traditional financial products don’t fit this bill.
“Yet the flexibility of the new breed of financial products, such as the Virgin One account means parents can help their children – whether it is to pay for big events such as weddings, funding a gap year or helping them come up with a deposit for a house. Our loans are at a mortgage-style interest rate and there’s no rigid repayment period so it could not be easier.”
The One account research also found:
* Women are twice as likely to share money worries with family - 27 per cent compared with 13 per cent of men
* Over a third of people questioned said that their bank is still the favoured place to go to for advice on money issues, while just under a third would talk to an IFA
* Young professionals are most likely to look to their friends for money (38 per cent)
* Adults who live with their parents prefer to use the free wisdom available under their roof – 35 per cent say they’d talk to their parents and they’re the least likely (at 16 per cent) to go to an IFA
The One account has produced a modern living guide to reflect different types of family in the UK. It includes advice on a range of issues – from how to cope with living with elderly parents to what people should do if buying a house with a friend. To get a free copy call 020 7395 4427.