Posted on 10/26/2013 9:23:40 AM PDT by nickcarraway
One in two adults has received financial support from their parents, a new study shows.
A report by the Social Market Foundation (SMF) has found that the "bank of mum and dad" is an essential source of welfare for people, particularly those on low incomes.
Of 2,565 people of all ages polled, 55% (1,400) said they had received money, of whom almost half that number (52% or 628) earn less than £20,000.
Almost one in four low earners (23%) said that without the money they would not have been able to survive.
The 25-34 age group across all income levels had the highest proportion of individuals turning to a parent for help, with 72% (300) saying they had received money from them.
The new survey is part of an SMF report called Family Fortunes, which shows the extent of inter-generational support in low-income families.
Calling on the Government to do more to facilitate family-based welfare, the report's author, Ryan Shorthouse, said: "We tend to think of the 'bank of mum and dad' as being about better-off families helping their children get on the housing ladder or pay for a wedding. But our research reveals that about half of families on low incomes receive regular financial and practical support, typically helping them to pay for everyday items, keep out of debt and make ends meet.
"The impact of such transfers is generally very positive, both for the donor and recipient. But not receiving support from the wider family can cause deprivation and isolation. When thinking about poverty, policymakers need to be more aware of this."
The think tank recommends the introduction of government-backed tax-efficient "Family Trust Funds" to help family members across generations to inve st in a tax-efficient trust managed by a representative from each household. Decisions on distribution would be determined by the trustees, and families would be prompted to enrol on receipt of child benefit.
Mr Shorthouse said: " With the recovery slow and public spending still under pressure, policymakers shouldn't solely focus on wages and benefits to boost living standards and reduce poverty.
"Family is a vital backstop for people on low-incomes, and practical measures like a government-backed trust fund could make a real difference.
"It's time for policymakers to be more creative and look at ways to enable people to untap the resources of their wider family."
Because Obama doesn’t care about employment. He wants full dependence, not full employment.
America needs to return jobs, to America.
I-pads. Tablet computers. Tools. Furniture. Toys. Computers. Clothes. You name it.
Bring back American production.
For crying out loud. Bring back American jobs.
Now.
I do not begrudge family supporting family.
It may not be great in some circumstances but it’s better than them all turning to government (ie THE REST OF US) for our money.
The reason we’re in this mess is because people don’t take care of their own and they now demand and expect all of us to do it, and cheerfully allow govt to confiscate our own hard-earned money to give to them. For doing nothing for it. And many times not even being grateful for it, and then wasting it on absolute CRAP.
"We champion policy ideas which marry markets with social justice and take a pro-market rather than free-market approach. Our work is characterised by the belief that governments have an important role to play in correcting market failures and setting the framework within which markets can operate in a way that benefits individuals and society as a whole."
Thank you for your reply.
I’m sorry I cannot involve myself in any discussion, whatsoever with you.
This is simply to note I have read your reply.
Thank you. Have a nice life.
Back in the day, I borrowed money from the parents national bank. Key word-Borrowed. I’ve also got a car lo9an out to my daughter right now. Lot lower interest rate.
We all (6 boys, 2 girls) had a "ledger' at one time or another for whatever reason ... we all paid it back.
Father ... the benevolent dictator ... because I said so.
"It's time for policymakers to be more creative and look at ways to enable people government to untap tap the resources of their wider family."
YEP...that is how it SHOULD work....Bank of Parents....NOT Bank of Taxpayers (esp. in the case of student loans, etc.)
I got money from my parents through about the age of 25. Mainly for school and a couple of moving instances. That said, Dad still gives us kids money each year at Christmas time but we primarily use that money to do things for him and other family members throughout the rest of the year. Buy meals, tickets to events, etc. for them that they otherwise wouldn’t buy for themselves.
I thought I was a benevolent dictator.
We’ll see what happens today when I present my daughter the bill for tires for her car. I went and got them today while she slept in. Cause it’s like the only chance I get to sleep in...until the next one. That’s OK, she worked till 11 last night.
As it should be...Families should take care of each other, then government wouldn’t have to.
I would rather lend money to my family, and keep the wealth in the extended family, than let outsiders make a profit on them.
Actually, I just recently got in the position to do much loaning. Job loss about 5 years ago, coupled with a cross country move and loss of almost all equity on the house kind of took whatever I had.
A few months ago, my dad failed in his plan to die broke. We’re now a bit more comfortable and able to help out the kids more than food, clothing and shelter.
On the flip side, how many elderly parents get assistance from their offspring? It does cut both ways. And it should.
We already have tax efficient family trusts. That’s how the Kennedy’s and Rockefeller’s and Buffet’s protect their family wealth.
never heard of pro-market... will have to look into that more
sort of like “pro” gressive I suppose.
Yeah ... I don’t know neither, but the whole website is chockablock full of lefty “data”
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