My Piggy Bank is Almost Full!
New research has revealed that young adults whose parents experienced regular debt whilst they were growing up are less likely to borrow money and get into debt themselves.
MyVoucherCodes.co.uk study found that 18-25 year olds are more cautious when it comes to loaning money as they fear ending up in the same situation as their parents.
36% admitted that their parents had regularly been in debt when they were growing up, excluding debt incurred through a mortgage. This has made young adults more aware of their own purse strings with 57% claiming they would never borrow money, with the exception of a mortgage, as 61% said they didn't want to end up like their parents.
The young adults also admitted that they would only start to panic if their debt reached up to £10,000.
41% said that their parents hadn't been in debt regularly when they were growing up and the remaining 23% were unsure. However, when those whose parents were not in regular debt when they were growing up were asked if they were likely to borrow money, just 13% said they would never borrow money with the exception of a mortgage.
Mark Pearson, chairman of MyVoucherCodes.co.uk, said: “The results to this poll were really interesting. Clearly it’s not the case that children of parents that were no strangers to debt are more likely to see borrowing as acceptable and nothing to worry about."
He added: “Young people who’ve experienced debt growing up obviously don’t want to follow in the footsteps of their parents and I can only see that as a positive thing. Unless it’s for something like a mortgage – and let’s face it, who has the money to buy a house outright these days? – debt should be avoided at all costs.”