While parents want to take steps to ensure the financial security of their offspring, they should not go so far as to put their own finances at risk, an expert has warned. Anna Sofat, a director at Addidi Wealth, noted that it is fully understandable for parents to look out for their children when it comes to financial matters, but suggested they should remember to be careful not to forget about their own monetary concerns.

A recent report from Skandia – a long-term investment provider – noted that some 40 per cent of parents openly admit to worrying about the state of their children’s finances, particularly that their children are developing debts that they will have to step in and help to resolve.

One option open to children not wishing to turn to their parents for financial backing is to choose a debt consolidation loan, so that all monthly outgoings are conjoined into one expense.

Ms Sofat noted that putting away some savings for children should not – and would not be likely to – impact on the financial stability of a parent, but suggested that help should only come where it is needed.

She said: “My advice to parents would be to certainly help their children as much as they are able to, but without neglecting their own financial wellbeing. Anything over and above a decent education should be seen as a bonus, not a life necessity. If children are always brought up to expect that they can always fall back on their parents, then where is the incentive for them to make something of themselves?”

Other findings from the Skandia report indicated that as the number of first-time buyers falls, around one third or parents now expect to provide a home for their children throughout their adulthood. As well as this, the report found parents believe their children may also sacrifice a safe community in order to be able to afford their first home.

The Skandia report found the top fears for parents were that retirement would no longer exist when their children grow up; that their children would choose not to get married or have children of their own due to the costs involved and that children will live at home until well into their 30s.

Strategy director at Skandia, Michelle Cracknell, said that the report indicates that the current financial pressures being put on parents by their children is likely to bring a “financial strain” as they approach retirement. But, she added, it is good to see that parents are putting cash aside in order to help their children become financially stable.

And choosing to talk to a financial adviser to see what financial products are best for the future – whether it be a secured loan or a long term investment – could be one option open to individuals who are unsure of the monetary stability of the family.

Earlier this month a survey by Lloyds TSB found that people in Britain are now beginning to fear for the security of their jobs, due to the continued worsening of the economic climate across the country.

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