Pocket money isn't what it used to be!

According to a story found on Magicloans.co.uk a recent Scottish Widows survey says that parents are giving huge amounts of their retirement money to their children.

On average parents are giving £12,610 to their grown up children, meaning that collectively parents are loaning £67 billion to their adult children. This is also known as a 'sap fund'. I guess it's because it's sapping retirement funds as this is what most parents say the money was going to be used for.

The adults children are using the money mainly to pay off loans, many of that being college loans I suspect! Or to pay for property or deposits on property.

I don't really know what to make of this. Parents are giving huge amounts to their children but surely it has always been that way. It is just that things are more expensive now? Compared to earnings, property used to be much more affordable now you hear rumors that people are borrowing 9 times their salary. I borrowed a huge amount when I purchased my apartment and now that it is sold I am still living with the consequences of not being able to save any money during that time and not making enough money on the sale to be in a good financial position.

I think parents should think twice before handing over their money. They need a retirement and if they have the option to live that comfortably then they should. Obviously if a child is desperate and a parent can help then this is a different matter.

The details of this story was found on Magicloans.co.uk. They offer Secured Loans and at present are offering an interest rate of 10.9%. You will also find up to date news and commentary from the financial and loans industry.

Their site offer a nice orange colored interface and easy to use loan calculators as well as access 24 hours to their customer services via an 0800 number.