Nearly a quarter (23%) of parents have dipped into their children’s savings since the coronavirus lockdown started, a survey has found.
Food bills were among the main reasons for parents needing to access their child’s savings, Direct Line Life Insurance found.
Covering utility bills, childcare costs, clothing, travel, and mortgage payments, rent or debts were also motivations, according to the survey.
People who are struggling to keep up with their regular bills may be able to take a payment holiday under measures designed to help households whose finances have been temporarily affected by coronavirus.
More than a quarter (27%) of parents have had to stop regularly setting aside money for their children since the start of lockdown in March, the survey of 2,000 people across the UK found.
Chloe Couper, business manager at Direct Line Life Insurance, said: “The impact of the coronavirus pandemic has been severe and unfortunately means many families are facing tough financial decisions.
“Widespread redundancies, furloughing and pay reductions have resulted in many households across the country having to cope on a lower income and try to reduce their spending.
“While it is understandable that parents feel they need to utilise any savings they and their children have to cover costs, this could have a negative long-term impact on their children if this money was being set aside for things like university fees or property deposits.”