Parental hand-outs not so helpful

Children's financial understanding stunted by parental help

12:03 21 June 2005

New research from NatWest has claimed that parents helping their children out with their finances could actually be doing them more harm than good.

According to NatWest Primeline, a 24-hour telephone banking service, those children who receive help from their parents are actually 25 per cent more likely to go into their overdraft than those who do not get help.

In addition, parents claim they feel their child should have achieved financial maturity, yet a third of young adults surveyed said their parents have never taught them how to manage money.

John Wills, head of NatWest Primeline, said: "Financial independence can at first seem very daunting but perhaps a little advice is all that's required to summon the confidence to fly the financial nest.

Those young people whose parents have never taught them to manage their finances can still find advice to help them stand on their own two feet. At Primeline, we provide each customer with a personal bank manager to help support them through any change in circumstances."

However figures showed that some children claim they do not have a financial understanding, when really they do and are simply making the most of the help from their parents.