A report by TSB has shed some light on the way that parent’s financial habits influence how their children deal with money and credit.
25% of those surveyed admit to following the same financial behaviours as their parents, while 17% confess that they view their parents as irresponsible spenders.
Borrowing habits such as credits cards and loans are likely to be passed on with 60% acknowledging the use of credits cards saying that their parents did the same. 67% of those that take out loans say that their parents also do so.
- 47% report regularly using credit cards
- 13% are investing in their money compared to 16% of parents
- 21% are likely to withdraw money from their savings.
Despite the financial habits, 27% of people turn to their parents for financial advice.
Parents have an influence on their children’s choice of bank with 31% opening an account with the same branch their parents use. The behaviour continues into adulthood with 34% still using the same account, while more than 22% continue to use it for 10 years or longer.
Craig Bundell, head of bank accounts, TSB, said:
“While parents can often be a good source of financial knowledge, a little research can go a long way so we urge Brits to do their homework, regularly assess their finances and make sure they are aware of the accounts and services that best suit their needs.”