Have you had to ask your parents for money amid the Covid-19 pandemic?
You’re not the only one.
Due to job loss, decreased earnings, illness, and the general lifestyle changes brought on by the coronavirus pandemic and ensuing lockdown, lots of us have found these past months difficult from a financial perspective.
So it’s no surprise that parents are reporting that they’ve stepped in to supply more financial support for their adult children.
Whether in the form of a loan, a monetary gift, or letting adult offspring move back home for little or no cost, parents have been relied on more heavily in the midst of global turmoil.
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In fact, a fifth of parents over the age of 50 say they have stepped up their financial support for their adult children, a survey of more than 1,400 parents by the Saga Equity Release Advice Service has found.
21% of parents in this age group say they have offered more financial support than usual since March.
While some parents have dipped into their savings to allow for this, others have had to cut back on their own spending, while others have handed over money that otherwise would have been left as part of their inheritance.
Common reasons over-50s parents have increased their financial support include their children being furloughed, having lost their job, or suffering debt problems.
Some parents said they wanted to help their children buy a house in light of the temporary stamp duty holiday.
Experts have warned us to prepare for the financial impact a second wave of coronavirus – and another lockdown – could have.
If your parents are able to help you out with some money or discounted rent, this is a far safer option than pursuing risky loans in the hopes that you’ll be much better off financially in a few months time. The truth is we don’t know what will happen in the rest of 2020 and beyond, so taking on any more debt now isn’t a wise idea.
Chris Jones, proposition director at Dynamic Planner, advises cutting your personal budget now to reduce your outgoings.
He told Metro.co.uk: ‘We learnt from the last wave that you do tend to spend less and if you were still getting paid then hopefully that extra money has accumulated in your bank account.
‘If you were one of the many who also lost your income then you will hopefully have had some savings to call upon or ate into your overdraft.
‘In any case, some basic cashflow planning is essential. How much have you got; how much do you need; and how long will it last?’
Be prepared for continued tough times and be especially cautious with your money.
And if you do find yourself in need of some help, don’t get too down in the dumps – we’re in a pandemic, things are tough, and it’s perfectly normal to need to lean on people.
The Money Advice Service has a great guide on how to start the money conversation with your parents (or anyone else), as well as advice for any other money worries you may have.
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