Parents falling into debt for children's sake

A third of parents are falling into debt to maintain their children's lifestyle as the cost of living rises.

A study by National Savings and Investments (NS&I) show 29 per cent of parents admit going into their overdrafts and 27 per cent take out loans or use a credit card to fund their children's expectations.

Some 52 per cent of parents polled work extra hours to make ends meet, and three quarters would cut down on their own socialising or buying clothes.

And the financial drag of offspring continues after they turn 18 – with 24 per cent saying they would support children until they were financially stable and 16 per cent would do so all their lives.

The NS&I Quarterly Savings Survey also shows how much people are managing to save amid record inflation biting away at earnings.

On average people are now saving 6.41 per cent of their income or £87.23 a month.

This compares with an ideal monthly savings level of £213.37 per head, or 15.67 per cent of total income.

However, regular savers are putting aside the highest amount on record - a rise of £7.42 over the last three months to £193.07.

But only 47 per cent of the population do regularly save each month.

On the whole, Brits are pessimistic about their savings options – with 40 per cent saying the are likely to save less in the three months running up to Christmas.